Global gold prices drop for third day in a row

Photo: Wam
Photo: Wam

Dubai - Strong dollar, Fed meeting keep precious metal investors on the sidelines.



by

A Staff Reporter

Published: Tue 15 Jun 2021, 9:53 AM

Last updated: Tue 15 Jun 2021, 9:54 AM

Global gold prices fell for the third day straight ahead of the US Federal Reserve meeting for clues.

Spot gold price was down 0.15 per cent at $1,864.41 per ounce at 9.20am UAE time as strengthening of the dollar also weighed on the sentiment.

In Dubai, the precious metal prices were unchanged on Tuesday morning with 24K trading at Dh226.0; 22K at Dh212.25; 21K at Dh202.5; and 18K at Dh173.75.

Naeem Aslam, chief market analyst at London-based AVA Trade, said the precious metal is losing some of its mojo, as the price has moved away from the 1,900 price level.

“However, the current retracement in the gold price doesn’t impose any long term threat to its uptrend. This is because gold prices are projected to rise due to a surge in inflation. Consumer price index reading in the United States rose in May, culminating in the highest yearly gain in more than 13 years,” said Aslam.

The CPI rose by 0.8 per cent in April and 0.6 per cent in May, the largest increase since 2009. “This should continue to provide more strength for the gold price," he said.

Margaret Yang, a strategist at DailyFX, said the strengthening dollar is weighing on gold. “Technically, gold has broken down a key support level and it seems to be entering into a bearish trend,” she said.

waheedabbas@khaleejtimes.com


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