UAE: Gold prices slip in Dubai, trading nearly a three-week low

Gold prices fell half a dirham at the opening of the markets in the UAE on Thursday.

The Dubai Jewellery Group data showed 24K trading at Dh231.25 per gram on Thursday morning as compared to last night’s close of Dh231.75 per gram; 22K, 21K and 18K opened at Dh214.0, Dh207.25 and Dh177.75 per gram, respectively, at 9 am local time.

Spot gold was steady at $1,910.23 per ounce by 9.35 am UAE time.

The yellow metal hit a nearly three-week low on Wednesday.

“I believe that strong economic data in August exerted downward pressure on gold prices. While the labour market had shown weakness in recent weeks, it recently rebounded with strong reports... As long as data continues to present mixed expectations, market participants can anticipate further interest rate hikes,” said Rania Gule, market analyst at XS.com.

Gule added that investors are likely to closely monitor the upcoming release of the US Consumer Price Index (CPI) data for August as it holds significant importance ahead of the Federal Reserve's policy meeting in September.

“In my opinion, this data has the potential to provide additional insights into the inflation scenario in the United States, which could significantly impact investor expectations regarding the US dollar and, consequently, gold trading,” she added.

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