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Dubai: Gold prices slump; 24K falls to Dh226 per gram

Dubai - Precious metal prices trade at nearly one-and-a-half week low on dollar strength

Gold prices dropped on Monday to their lowest level in more than a week due to the stronger US dollar.

Spot gold was down 0.52 per cent at $1,864.04 per ounce, as of 9.20am UAE time, its lowest since June 4.

In the UAE, the yellow metal’s prices slumped Dh1.5 per gram at the opening of the trade on Monday in line with a fall in global rates.

The Dubai Gold and Jewellery Group data showed 24K price falling from Dh227.5 to Dh226.0 per gram; 22K dropping from Dh213.75 to Dh212.25; 21K slipping from Dh204.0 to Dh202.5; and 18K fell from Dh174.75 to Dh173.5 on Monday morning.

Commodity investors were also waiting for cues from the US Federal Reserve meeting this week after the recent spike in US inflation.

“Softening US yields should boost appetite in non-interest-rate-bearing gold, but easing inflation expectations should cap the upside appetite, this time,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

“The market is starting to anticipate maybe a modest pivot towards discussing taper and it’s sending investors into more of either profit-taking or reducing gold and also currency positions,” said Stephen Innes, managing partner at SPI Asset Management.

“Because of this, the dollar has also gotten a little bit stronger. I think primarily, the inflation pressures are at a state that they may not last, so there’s a little bit of uncertainty how CPI is going to continue playing out.”

-waheedabbas@khaleejtimes.com