Dubai: Gold drops more than Dh1 per gram

Waheed Abbas/Dubai
Filed on June 10, 2021

(File photo)

Precious metal eases as dollar firms ahead of US data, ECB meeting

Gold price in Dubai fell more than one dirham per gram on Thursday morning due to the strengthening of the dollar.

Investors were also waiting for US data and European Central Bank (ECB) meeting which are due later today for further direction.

The Dubai Gold and Jewellery Group data showed 24K gold trading at Dh228.25 per gram at the opening of the market on Thursday as against Dh229.50 on Wednesday morning. Among other variants of the precious metal, 22K fell from Dh215.5 to Dh214.5; 21K dropped from Dh205.75 to Dh204.75; and 18K slipped from Dh176.25 to Dh175.5 per gram.

While spot gold was down 0.1 per cent at $1,886.86 per ounce at 9.28am UAE time.

Naeem Aslam, chief market analyst at London-based AVA Trade, expects ECB will highly likely present a more optimistic tone.

“Economic projections will also be released, and the truth of the matter is that things have shifted enormously from the previous reading during the past three months in the Eurozone — mostly in the positive direction. For instance, the Eurozone has a much firmer outlook now compared to where things were three months ago. This means that the bank should start preparing the markets that the time has come that some of the coronavirus-related support is likely to be pulled back from the system,” said Aslam.

The ECB policy decision is due at 3.45pm UAE time followed by US consumer price index report later in the day which will provide further clarity on policymakers' view on a rise in prices and the future of economic support measures.

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