Dubai gold prices fall after dollar gains, 24k priced at Dh151.25

The US tax reform fueled optimism about the US economy and boosted the dollar.

Gold prices hovered above a four-month low on Friday and were on track for their biggest weekly fall since May after progress on US tax reform fueled optimism about the US economy and boosted the dollar.
Dubai gold prices are at Dh151.25 for 24-karat and 22-karat can be bought for Dh142.
Stronger-than-expected US employment data on Friday also demonstrated healthy economic growth and suggested the Federal Reserve will raise interest rates next week, as expected.
Spot gold was up 0.1 percent at $1,247.81 an ounce by 2:34 p.m. EST (1934 GMT), near Thursday's low of $1,243.71, the weakest since July 26. It has fallen 2.6 percent so far this week, its third consecutive weekly fall and the biggest since early May.
US gold futures settled down 0.4 percent at $1,248.40.
"Gold's luster was tarnished this week, not only by its failure to react at all positively to Trump's contentious Jerusalem announcement but also by its unseemly retreat through the bottom of a five month range," said Tai Wong, head of base and precious metals trading at BMO Capital Markets in New York.
"Bullion stabilized somewhat today, helped by weak earnings in the US employment report with bulls now pinning their hopes on a dovish hike by the Federal Reserve next week."
The US Fed is expected next week to announce a rise in interest rates and offer guidance on the pace of further increases. It has previously forecast three rate hikes in 2018.
That is likely to pressure gold prices because rising interest rates push up bond yields, reducing the appeal of non-yielding gold, and tend to boost the dollar.
Wall Street and other major global stock markets rose, and the US dollar was on pace for its fifth day of gains after the jobs data.
Selling of gold was triggered this week after it broke below $1,260, the bottom of its trading range since September, and plunged below its 200-day moving average for the first time since July.
"You can put it down to the strength of the dollar and the ebullience of investors regarding equities and all things risk-on," said ETF Securities analyst Martin Arnold.
"When in such a positive mindset investors don't look for defensive assets like gold."
Among other precious metals, platinum was down 0.8 percent at $895 an ounce after falling to the lowest since February 2016 at $878.50. It was and on track to fall 5.5 percent this week, its biggest weekly loss in 13 months.
Silver was up 0.5 percent at $15.81 but down nearly 4 percent this week. Palladium was 0.6 percent lower at $1,007 an ounce.

• Gold and Forex
• Dubai