Dubai: Gold prices drop further, 24K trades at Dh215.25 per gram

Spot gold was trading at $1,777.45 an ounce at 9.15 am UAE time.

Agencies file
Agencies file

A Staff Reporter

Published: Tue 7 Dec 2021, 9:48 AM

Gold prices fell on Tuesday morning as investors were focused on US consumer prices data due later this week.

Spot gold was trading at $1,777.45 an ounce, down 0.20 per cent at 9.15 am UAE time.

In the UAE, the 24K price fell to Dh215.25 per gram at the opening of the market on Tuesday. While 22K, 21K and 18K opened at Dh202.25, Dh193.0 and Dh165.25 per gram, respectively.

Edward Moya, senior market analyst at Oanda, said the yellow prices are struggling as demand for safe-havens eases as early data suggest Omicron cases remain mild.

“Gold was unable to muster up much of a rally after China cut the cash reserve requirement ratio as their debt-loaded property market continued its downward spiral. Gold will face its true test later this week when a hot inflation report could seal the deal for an aggressively faster taper by the US Federal Reserve,” said Moya.

“Treasury yields got their momentum back as optimism grows that the Omicron variant won’t lead to widespread lockdowns as early data suggests cases remain mild. Gold may consolidate between the $1,750 and $1,800 trading range,” he added.

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