Due to rising oil costs during the Middle East conflict, the price of 24K gold dropped below Dh500 per gram on Monday night and continued to be under pressure on Tuesday morning.22K, 21K, and 18K gold prices, among other precious metal variations, were Dh466.25, Dh447.25, and Dh383.25 per gram, respectively.
The current pressure on bullion, according to Naeem Aslam, chief investment officer at Zaye Capital Markets, is driven by rising Treasury yields, a stronger US dollar, and expectations that interest rates may stay tight longer. These factors all increase the opportunity cost of holding a non-yielding asset.
With a focus on robust employment, domestic manufacturing investment, and extensive industrial expansion, US President Donald Trump’s most recent economic statements are bolstering the narrative of durable US economy, he added.
Aslam says Trump’s remarks on domestic manufacturing, 50% tariffs, and steel output add another layer to the gold outlook: more industrial activity can boost growth, but tariffs may also raise input costs and inflationary pressure.
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