Dubai: Gold prices drop ahead of US jobs data

Dubai - Spot gold fell 0.23 per cent to $1,760.12 per ounce by 9.15 am UAE time

Gold prices fell on Thursday as the dollar remained firm and investors were cautious ahead of a US payrolls report that is expected to provide clues on the Federal Reserve's tapering timeline.

Spot gold fell 0.23 per cent to $1,760.12 per ounce by 9.15 am UAE time.

In the UAE, 24K was trading at Dh213.25 per gram, 22K at Dh200.25, 21K at Dh191.0 and 18K at Dh163.75 at the opening of the market on Thursday.

"Central banks are in a very precarious situation as they watch inflation continues to pick up... Historically, it is good for gold, but it doesn't work that way in an environment where central banks are starting to shift into rate hike mode," Stephen Innes, managing partner at SPI Asset Management, told Reuters.

"If we get a strong employment number and US yields move towards 1.6 per cent, I think gold could trade down to $1,725."

Overnight, the yield on 10-year US Treasuries eased off a more than three-month high, but remained above 1.5 per cent.

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US nonfarm payrolls data, due on Friday, is expected to show an improvement in the labour market, which is likely to prompt the central bank to begin withdrawing pandemic-era support for the economy before year-end.

waheedabbas@khaleejtimes.com