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Dubai: Gold prices drop, 24K falls to Dh215 per gram

Dubai - Spot gold was down 0.12 per cent at $1,776.13 per ounce at 9.15am UAE time.

Gold prices fell on Tuesday morning due to rise in US dollar and concerns that the Federal Reserve can tighten monetary policy sooner than expected.

Spot gold was down 0.12 per cent at $1,776.13 per ounce at 9.15am UAE time. While precious metal prices in the UAE also fell in line with drop in global rates.

The Dubai Gold and Jewellery Group data showed 24K price dropping from Dh215.75 per gram on Monday morning to Dh215.0 at the opening of the market on Tuesday. While 22K, 21K and 18K prices fell to Dh201.75, Dh192.5, and Dh165.0 per gram, respectively.

Gold is seen as a hedge against inflation, though a rate hike by the Fed will increase the opportunity cost of holding bullion and dull its appeal.

Naeem Aslam, chief market analyst at Ava Trade, said the price of gold has been very much moving in a side way pattern after the massive drop that happened on the back of the hawkish comments from the Fed meeting.

“However, the fact that inflation data confirmed that the Fed may not be taking any aggressive stance towards their monetary policy should lend a helping hand to gold bulls. The most important event for the gold bulls this week will be the US NFP (nonfarm payrolls) data as that is more likely to move the gold price,” said Aslam.

waheedabbas@khaleejtimes.com