UAE: Gold price drops over Dh2 per gram, near one-year low

24K was trading at Dh205.0 per gram on Thursday morning


Waheed Abbas

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Published: Thu 21 Jul 2022, 10:06 AM

Gold prices fell more than Dh2 per gram in the UAE on Thursday morning, trading close to one-year low.

The Dubai Gold and Jewellery Group data showed 24K trading at Dh205.0 per gram on Thursday morning as compared to Wednesday’s close of Dh207.25 per gram. Among the other variants of the yellow metal, 22K opened at Dh192.5 per gram, 21K at Dh183.75 and 18K at Dh157.5 on Thursday morning.

Globally, gold prices fell on Thursday morning to their lowest in nearly a year, as an elevated US dollar and prospects of more interest rate hikes by major central banks to combat soaring inflation weighed on bullion’s appeal.

Spot gold was down 0.2 per cent at $1,692.5 per ounce by 9.10 am UAE time.

The dollar held below two-decade highs against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies.

The European Central Bank will raise interest rates for the first time in 11 years on Thursday with a bigger-than-flagged move seen as increasingly likely as policymakers fear losing control of runaway consumer price growth.

The US Federal Reserve is widely expected to raise interest rates by 75 basis points at its policy meeting next week.

Jeffrey Halley, senior market analyst at Oanda, said if any asset class yells that the risk sentiment rally could be a very false dawn, it is gold.

“Having completely failed to rally on material US dollar weakness this week, it has edged even lower to longer-term support overnight and this morning. To say that gold’s price action is underwhelming is an understatement. It appears to be facing imminent material downside risks if the technical picture is to be believed,” he said.

“It is now just above longer-term support around the $1,675 an ounce zone. A sustained failure of $1,675 will signal a much deeper move, targeting the $1,450 to $1,500 an ounce regions. Gold has resistance nearby at $1,720, then $1,745, now a triple top,” added Halley.


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