Dubai: Gold prices drop; 24K trades at Dh215.75 per gram

Gold prices slightly dropped at the opening of the market on Monday.

Spot gold was little changed at $1,781.63, down 0.06 per cent at 9.15 am UAE time.

In the UAE, the 24K price fell Dh0.75 per gram on Monday morning to Dh215.75. While 22K opened at Dh202.75, 21K at Dh193.5 and 18K at Dh165.75 per gram.

The precious metal is caught between subdued US bond yields and the prospect of the Federal Reserve tightening policy at a faster pace which dimmed its appeal.

US 10-year Treasury yields hovered near a more than two-month low hit on Friday. Thirty-year Treasury yields were also close to their lowest since the start of this year. Weaker yields decrease gold's opportunity cost.

Jaffrey Halley, senior market analyst at Oanda, said gold remains side-lined, trading sideways on a closing basis, despite some decent intraday ranges.

“In the bigger picture, gold looks set to trade in a rough $1,770 to $1,800 an ounce range this week, unable to sustain momentum above or below those levels. The 50,100 and 200-day moving averages (DMAs), clustered between $1,791 and $1,793 provide immediate resistance, followed by $1,800. Support lies at $1,770 and $1,760,” he said.

“With the omicron outlook looking less bleak, and with longer-dated US yields continuing to fall, gold could well stage a modest recovery this week,” he added.

waheedabbas@khaleejtimes.com

• Dubai