Gold prices dipped on Monday morning as the US dollar strengthened ahead of key central bank meetings, making bullion more expensive for holders of other currencies.
Spot gold was down 0.11 per cent at $1,787.44 per ounce at 9.15 am UAE time.
In the UAE, gold prices fell more than one dirham at the opening of the market with 24K trading at Dh216.50 per gram, down Dh1.5 per gram. While 22K, 21K and 18K opened lower at Dh203.25, Dh194.0 and Dh166.25 per gram.
The precious metal fell for a fourth consecutive session on Monday and was set for its biggest monthly drop since last September. The metal has declined more than two per cent so far this month.
The dollar index hovered close to an 18-month peak scaled last Friday.
Edwar Moya, senior market analyst at Oanda, said gold’s pain may last a little longer until the US Federal Reserve’s aggressive pivot with tackling inflation is fully priced in.
“The $1,800 level was a key support level for gold, so momentum selling has the potential to make this an interesting trade. If it gets ugly quick and $1,760 breaks, gold may not see much support until $1,720,” he said.
However, lower crude prices in the international market and fresh foreign fund inflows restrict the rupee’s fall, forex dealers say
The dollar index, which gauges the greenback's strength against six currencies, fell 0.41 per cent to 105.63, post weak US data and dovish Fed minutes
San Francisco Fed President Mary Daly said the real-world impact of US interest rate hikes is likely greater than what its short-term rate target implies
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.24 per cent to 107.57