Latest Dubai gold prices: Metal loses nearly Dh700 per ounce in 1 year

Dubai-UAE (Jan 24)  The precious metal may have steadied in the past few days, but over the course of one year, it lost nearly Dh700 in value per troy ounce, official data showed.

According to the statistics compiled by the World Gold Council, the price of gold dropped by approximately 15 per cent, from $1,251.9 in January 30, 2015 to $1,068.3 in December 31, 2015.

In dirham terms, the decline is equivalent to Dh674.50, from Dh4,598.1 to Dh3,923.6 per ounce. For retail gold buyers, the drop is about Dh22 per gram, on average.

Prices fluctuated several times this year and reacted to the recent market turbulence, coupled with the strengthening of the US dollar, persistent decline in oil prices and rising tension between Saudi Arabia and Iran.

Since Thursday, the yellow metal steadied, with 24-carat gold trading at Dh132.25 per gram in Dubai.

There are indications that gold is still being favoured as a safe-haven asset by investors around the world, although it remains prone to further downturns.

Ole Hansen of Saxo Bank said  gold remains a top performer against most assets this year, with total holdings in exchange-traded products (ETPs) backed by the metal jumping by 42 tonnes since January 6, recouping half of what was sold during the October to December sell-off.

“This was the biggest jump since last January were the Swiss franc debacle and the ECB quantitative easing introduction triggered a strong rally in gold and with it increased demand for ETPs,” Hansen said in his latest note sent to Gulf News.

The precious metal rallied by $118 during the first three weeks of the year before slumping by $150 during the remainder of the quarter.

“Back then ETP holdings were 180 tonnes higher than now while hedge funds had accumulated a net long of 17 million ounces compared to zero now. These changes both fundamentals and market positioning have left gold more immune to renewed attempts to weaken it.”

Source: GulfNews