Gold prices traded lower in Dubai on Tuesday morning, losing Dh5 from the day before.

The 24K variant was trading at Dh473 per gram at the market open on Tuesday, down from Dh478 at the market close on Monday, according to data by Dubai Jewellery Group. The 22K, 21K, 18K and 14K variants were trading lower at Dh438, Dh419.75, Dh359.75 and Dh280.75 per gram, respectively.

Globally, spot gold was down 0.87 per cent at $3,925.5 per ounce. Silver was down 2.52 per cent at $49.56 per ounce.

Breaking below the $4,000 level could cause additional selling pressure, especially from physically backed products, which had remained very resilient of late, said Carsten Menke, Head of Next Generation Research at Julius Baer.

"Short-term price risks seem skewed to the downside, but we still see a compelling longer-term backdrop. Both gold and silver should be supported by concerns about the indebtedness and interest-rate burden of the United States," Menke said.

(Source: Khaleej Times)