Gold prices in Dubai and worldwide continued to decline on Wednesday, losing nearly two per cent, as investors remained focused on high-yield US Treasury.
In Dubai, 24K retail gold price fell from Dh207 per gram on Tuesday morning to Dh203.50 on Wednesday morning; while 22K price dropped from Dh194.5 to Dh191.25; 21K price slipped from Dh185.5 to Dh182.5; and 21K price hit Dh156.25 today as against Dh159 yesterday.
As a result of drop in prices of precious metals, UAE residents — especially Indian and Chinse expatriates — have been rushing to buying gold.
Shamlal Ahamed, managing director for international operations at Malabar Gold & Diamonds, said they are seeing a big increase in customer footfall as residents are taking advantage of the recent drop in prices and buying gold.
Globally, spot gold price fell below $1,700 an ounce, dropping 1.93 per cent, or $33 to $1,679.15 an ounce at around 9.10am UAE time.
Analysts said faster-than-expected growth in China's factory activity weighed on the metal's safe-haven appeal, while a surge in US Treasury yields added further pressure.