Dubai: 24K gold price drops below Dh210

Dubai - Among other variants of the precious metal, 22K was trading at Dh197.0 per gram, 21K at Dh188.0 and 18K at Dh161.25 on Thursday morning

Gold prices fell in Dubai on Thursday morning, compared to Wednesday’s close, as 24K slipped below Dh210 per gram level, hit by stronger US dollar.

The Dubai Gold and Jewellery Group’s data showed 24K price falling Dh0.75 per gram to trade at Dh209.75 at the opening of the market on Thursday. Among the other variants of the precious metal, 22K was trading at Dh197.0 per gram, 21K at Dh188.0 and 18K at Dh161.25 on Thursday morning.

Globally, spot gold was trading at $1,732.83 per ounce, up 0.23 per cent, at 9.15am UAE time.

The precious metal price was impacted by the expectations that the US Federal Reserve could start reducing its pandemic stimulus, which kept the dollar index near a one-year high.

Daniel McCarthy, a strategist for DailyFX.com, said gold prices have weakened over the last few sessions as the US dollar continued to get support from Treasury yields going higher.

On Wednesday, spot gold prices hit a fresh low that has not been seen since early August. In Asian trade, gold has had a small bounce as US yields eased a touch.

Ilya Spivak, a strategist at DailyFX, said while there are ample risks that could help gold break higher, such as weaker economic data or the Evergrande debt crisis potentially spilling over into other economies, these are unlikely to provide lasting support.

Spivak said a break below $1,700 could see yellow metal testing the $1,675-$1,680 level.

• Dubai