Dubai gold prices see slight increase after Wednesday slump

Globally, gold prices drifted away from its 7-week high.

By Reuters

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Published: Thu 3 Aug 2017, 7:22 AM

Last updated: Thu 3 Aug 2017, 8:32 PM

Gold prices on Thursday drifted further away from seven-week highs hit earlier this week, as the dollar firmed on expectations the U.S. Federal Reserve could trim its bond holdings in September. Spot gold had fallen 0.3 percent to $1,262.40 (Dh4,636.80) per ounce by 0033 GMT. U. gold futures for December delivery dropped 0.8 percent to $1,268.70 (Dh4,660.85) per ounce.
Price of gold in Dubai managed to bounce back from yesterday's rate of Dh153.25 for 24k gold. It currently sits at Dh153.50. 21k gold on the other hand can be bought in Dubai for Dh137.50.
The U.S. economy will likely be strong enough for the Fed to trim its bond holdings in September, San Francisco Fed President John Williams said on Wednesday, in a sign the central bank is close to unwinding a controversial stimulus tool.
Factors that affected global gold prices include US President Donald Trump grudgingly signed into law new sanctions against Russia on Wednesday, a move Moscow said amounted to a full-scale trade war and an end to hopes for better ties with the Trump administration.
A ban on travel by U.S. passport holders to North Korea will take effect on Sept. 1 and Americans in the country should leave before that date, the US State Department said on Wednesday.
The Bank of England looks set to keep interest rates at a record low once again on Thursday with investors looking for signs that, faced with Brexit, it is getting nearer to raising rates for the first time in a decade.

• Gold and Forex
• Dubai