UAE: Gold prices slip in Dubai in early trade

Spot gold was little changed at $1,960.91 per ounce by 9.10am UAE time

Top Stories

UAE announces 2-month grace period for residence visa violators

UAE announces fee refund for tax service charges from August 1

Paid parking in Dubai: Residents face up to Dh4,000 extra yearly costs when new rates kick in

Published: Mon 24 Jul 2023, 9:31 AM

Last updated: Mon 24 Jul 2023, 9:45 AM

Gold prices dropped slightly in the UAE on Monday morning in line with the global rates ahead of the US Federal Reserve meeting this week.

According to Dubai Jewellery Group data, the 24K opened at Dh237.25 per gram on the first trading day of the week as compared to last week’s close of Dh237.5 per gram. While 22K, 21K and 18K were trading at Dh219.75, Dh212.75 and Dh182.25 per gram, respectively, at 9am UAE time.

[Editor's Note: For real-time gold rates, click widget below or visit KT's dedicated Trading News page here.]

Spot gold was little changed at $1,960.91 per ounce by 9.10am UAE time.

Swiss bank Julius Baer said weaker-than-expected US inflation, a growing consensus of only one more interest rate increase in the US, and renewed hopes of a reversal in US monetary policy have pushed up gold prices during the past few days.

“We struggle to share this optimism. The resilience of the US economy speaks against a strengthening of safe-haven demand, and the high level of US interest rates is keeping safe-haven seekers on the sidelines. All in all, we believe that gold and silver are again starting to trade on a somewhat softer footing,” said Carsten Menke, head of Next Generation Research, Julius Baer.

Reflecting the resilience of the US economy, Menke believes that interest rates are set to stay high for longer.

“We still see no recession looming on the horizon, and the risk of a harsh economic contraction seems to be falling, not rising. The renewed rally in gold and silver prices during the past few days mirrors the weakness of the US dollar, suggesting that it was driven much more by an improving market mood than returning demand from safe-haven seekers,” he added.

ALSO READ: