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UAE: Gold prices drop, 24K down more than a dirham per gram in Dubai

Spot gold was down at $1,919.9 per ounce, as of 9.15am local time

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Gold prices were down on Tuesday morning, as market participants held back from making large bets ahead of the US Federal Reserve policy decision.

Spot gold was down at $1,919.9 per ounce, as of 9.15am UAE time.

The precious metal prices fell more than a dirham per gram in the UAE at the opening of the markets on Tuesday.

According to the Dubai Jewellery Group, 24K was trading at Dh232.5 per gram, down from Dh233.75 per gram at the close of the markets on Monday. The other variants of the precious metals also opened lower. As per Dubai Jewellery Group data, 22K opened at Dh215.25, 21K at Dh208.25 and 18K at Dh178.5 per gram.

Edward Moya, a senior market analyst, Oanda, said gold prices are weakening as global bond yields rally after hot inflation from Madrid reminded investors that maybe they were too quick in declaring the inflation fight is nearly over.

“Gold’s main kryptonite is if the Fed can’t control inflation and they need to tighten much more than markets are expecting. Gold could enter the ‘danger zone’ if we get a couple more hotter-than-expected inflation reports and a robust NFP report that suggests wage pressures will be here for a while,” he said.

Moya added that disinflation trends remain in the US but any shock inflation report could disrupt the very bullish outlook that has been building up for bullion.

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