Dubai gold prices drop; 24K falls below Dh209

Gold prices were slightly down on Monday in the UAE and worldwide.

Spot gold was slightly down $4.41 or 0.26 per cent at $1,724.58 per ounce, as of 9.50am UAE time, while gold futures edged up 0.1 per cent to $1,729.50 per ounce.

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>> Dubai: 24K gold price likely to go up to Dh217.4 this week

In Dubai, gold prices were also down on Monday morning. 24K gold price was trading at Dh208.75 per gram as compared to its previous close of Dh209.75 on Friday. Meanwhile, 22K, 21K and 18K retail gold prices stood at Dh196.25, Dh187.25 and Dh160.50 per gram, respectively.

Vijay Valecha, chief investment officer at Century Financial, has projected that 24K gold prices will trade in the range of Dh203.25 to Dh217.50 this week.

Gold is seen as a hedge against rising inflation, but firmer Treasury yields, which translate into a higher opportunity cost for holding bullion, have challenged that status.

Money managers in the gold, silver and copper markets cut their net long futures and options positions last week, according to data from the Commodity Futures Trading Commission.