Gold prices have recently seen a pullback, with Dubai’s rates decreasing as global concerns regarding U.S. tariffs and rising Treasury yields weigh on market sentiment. The price of gold has remained just below the $3,000 per ounce level after a brief decline.
Dubai Gold Prices Drop
In Dubai, gold prices have fallen. The price of 24-carat gold decreased by AED5, bringing it to AED359.75. Similarly, 22-carat gold dropped by AED3.25, now priced at AED334.50. 21-carat gold saw a decrease of AED3, settling at AED320.75, while 18-carat gold also dropped to AED275.00.
Market Stability and Resistance at $3,000
Gold prices have stabilized just below the $3,000 threshold, with the current price hovering around $2,980 per troy ounce. Despite this, price action suggests resistance near the $3,000 mark, with traders facing difficulty in pushing past this level. A failure to close above $3,000 could prompt a move towards the 50-day Simple Moving Average at $2,947, potentially pushing prices lower to around $2,900.
Market Sentiment and U.S. Tariff Concerns
Investor sentiment has become more cautious, as U.S. stock markets experienced notable declines. The volatility index (VIX) surged, reflecting growing concerns over the economic outlook. The recent announcement from the White House to maintain 104 percent tariffs on Chinese goods contributed to market uncertainty, leading to a reversal of gains in major stock indices, including the S&P 500, Dow Jones, and Nasdaq.
Impact of Rising U.S. Yields on Gold Prices
Gold prices have also been under pressure due to rising U.S. Treasury yields, which diminish the appeal of the non-yielding asset. The swaps market is currently pricing in a 40 percent likelihood of a Federal Reserve rate cut in May, but rising yields continue to exert downward pressure on gold.
Federal Reserve Officials Weigh in on Economic Outlook
Federal Reserve officials have recently commented on the potential implications of tariffs and economic uncertainty. San Francisco Fed President Mary Daly noted that while there is uncertainty, underlying optimism remains. She expressed concern that tariffs could contribute to rising inflation. Meanwhile, Chicago Fed President Austan Goolsbee highlighted the significant impact of tariffs, noting concerns about higher inflation.
Market participants are also preparing for the release of the Federal Reserve’s meeting minutes, which are expected to provide further insights into the central bank’s views, along with new inflation data from both consumer and producer perspectives.
Get the latest supply chain report news at The Supply Chain Report. Learn more about international trade with tools from ADAMftd.com.
#DubaiGoldPrices #GoldMarketTrends #USDYields #TariffConcerns #PreciousMetals #GoldPriceDecline #GlobalEconomy
