UAE: Gold prices drop Dh1 per gram in early trade at start of the week

The yellow metal is now close to the overbought territory according to an expert


Waheed Abbas

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Published: Mon 23 Oct 2023, 9:34 AM

Gold prices slipped in the UAE on the first trading day of the week, losing Dh1 per gram of its value.

The Dubai Jewellery Group data showed 24K trading at Dh239.0 per gram on Monday morning as compared to last week’s close of Dh240.0 per gram.

While 22K, 21K and 18K also opened lower at Dh221.25, Dh214.25 and Dh183.5 per gram, respectively.

Spot gold dropped 0.8 per cent to $1,965.89 per ounce, retreating from a five-month peak scaled in the previous session, as robust US Treasury yields cut demand for the non-yielding asset ahead of key inflation and economic growth data due later this week.

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Daniel McCarthy, strategist, dailyFX, said the yellow metal price eased on Monday after posting solid gains on perceived haven flows outweighing the higher yields on government bonds across most of the globe.

“While the geopolitical situation in the Middle East assisted in undermining growth and risk-orientated assets such as equities, parts of the fundamental macroeconomic backdrop could have also played a role in the precious metal’s rally,” said McCarthy.

Alex Kuptsikevich, senior market analyst at the FxPro, said gold is now close to the overbought territory, making it vulnerable to a reversal under pressure from fundamental factors such as high bond yields and a strengthening dollar.


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