Dubai: Gold prices drop as dollar firms

Web Report/Dubai
Filed on June 24, 2021

(Reuters file)

In the UAE, gold prices fell around Dh0.75 per gram at the opening of trade on Thursday.

Gold priced dropped on Thursday morning due to rise in dollar’s value, making precious metal more expensive for holders of other currencies.

Spot gold was down 0.11 per cent to $1,775.61 per ounce at 9.20am UAE time.

In the UAE, gold prices fell around Dh0.75 per gram at the opening of the trade on Thursday. The Dubai Gold and Jewellery Group data showed 24K trading at Dh215.0 per gram, 22K at Dh202.0, 21K at Dh192.75 and 18K at Dh165.25.

The dollar index held firm below an 11-week high against its rivals.

“With a lack of clear direction and contradictory themes coming from Fed officials and the news headlines, expect gold to continue its choppy range-bound trading,” Jeffrey Halley, a senior market analyst at OANDA said.

“The market remains nervous about earlier lift-off entrenched inflation type headlines and so gold will remain a sell on rallies into the end of the week.”

Gold is often seen as a hedge against inflation, though a rate hike by the Fed will increase the opportunity cost of holding bullion and dull its appeal.

Spot gold is biased to downside and may test a support at $1,769 per ounce, a break below which could open the way towards the range of $1,734-$1,744 range, according to Reuters technical analyst Wang Tao.

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