Time to buy: Gold slips; 22K price falls below Dh200 in UAE

Gold prices fell on Monday morning as Turkey replaced its central bank governor with a high interest rate critic led to investors flocking towards the safety of the dollar, on fears that the move would threaten other financial markets.

Also read:

Latest forex rate in UAE today

Time to remit: Indian rupee strengthens vs dirham as dollar inflow rises

Spot gold prices fell 0.3 per cent to $1,739.80 per ounce by 0052 GMT (4.52am UAE time). US gold futures were down 0.2 per cent at $1,738.80 per ounce.

Gold price in the UAE stood at Dh211.50 an ounce for 24K and Dh198.5 for 22K. While 21K and 18K gold rates were Dh189.5 and Dh162.5 on Monday morning.

President Tayyip Erdogan, on Saturday, unexpectedly fired Turkey's central bank chief, Naci Agbal, replacing him with a former ruling party legislator and opponent of tight monetary policy, Sahap Kavcioglu.

Concerns that developments in Turkey would threaten other financial markets strengthened the dollar, making gold expensive for non-US investors.

Meanwhile, Federal Reserve Chair Jerome Powell told Wall Street Journal that the US would pull out of the crisis "stronger and better, as we have done so often before."

Also, big US banks will have to resume holding an extra layer of loss-absorbing capital against US Treasuries and central bank deposits from next month after the Fed said on Friday it would not extend a temporary pandemic regulatory break due to expire this month.

Last week, yields spiked on the longer end of the curve, fuelled by the Fed policy meeting, boosting economic growth expectations for 2021. Higher yields lift the opportunity cost of holding non-yielding bullion.