UAE: Gold prices drop in early trade on Wednesday

Gold prices fell in the UAE at the opening of the markets on Wednesday.

The Dubai Jewellery Group data showed 24K trading at Dh220.75 per gram on Wednesday morning as compared to last night’s close of Dh221.5 per gram. Similarly, the other variants also opened lower. The 22K, 21K and 18K were trading at Dh204.5, Dh198.0 and Dh169.75 per gram, respectively.

Spot gold eased 0.1 per cent to $1,821.97 per ounce by 9.25am UAE time.

Prices fell for a seventh consecutive session on Tuesday to touch their lowest levels since March at $1,813.90, as the US dollar strengthened on data showing US job openings unexpectedly increased in August.

The unexpected rise in August US job openings highlights the durability of labour demand, NAB Resources said, adding that gold continues to decline on the higher-for-longer Federal Reserve rates outlook, strengthening U.S. bond yields and the dollar.

Daniel Dubrovsky, contributing senior strategist at dailyFX, said over the past 2 weeks, gold prices have sunk about 5.3 per cent.

“This is setting the stage for the worst 10-day period for the Philadelphia Gold and Silver Index since early July. In response, retail traders continue to increase their bullish exposure in the yellow metal,” he said.

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