UAE: Gold prices open sharply lower in Dubai, falling over Dh1 per gram

Gold prices opened sharply lower in the UAE on Tuesday morning, falling more than one dirham per gram at the opening of the markets.

As per Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh232.0 per gram on Tuesday morning as compared to Dh233.25 at the close of the markets on Monday. Similarly, the other variants of the precious metal also opened lower with 22K trading at Dh214.75, 21K at Dh208.0 and 18K at Dh178.25 per gram.

Spot gold ticked down 0.06 per cent to $1,915.13 per ounce by 9.17am UAE time.

Investors are awaiting a key consumer inflation report for more cues on whether the Federal Reserve will hike interest rates once again this year.

In the coming days, the US economic calendar will include key data releases such as Consumer Confidence, Durable Goods Orders, Initial Jobless Claims, and the Core PCE, the Fed's preferred measure of inflation.

Vijay Valecha, chief investment officer, Century Financial, said the annual figure for Core PCE is expected to drop from 4.2 per cent to 3.9 per cent and these figures could provide further direction for gold.

“US Federal Reserve Governor Michelle W. Bowman asserted that more rate hikes are necessary to control inflation. The rising interest rates increase the opportunity cost of investing in non-yielding assets, implying a negative outlook for precious metals like gold. Additionally, the Fed's "dot plot" now indicates only two rate hikes in 2024, down from the previous projection of four rate hikes,” said Valecha.

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