Dubai: Gold prices drop as dollar gains

PHOTO

UAE - Gold prices edged down on Monday morning in the UAE as the dollar firmed, while investors awaited this week's US inflation data for cues on the Federal Reserve's interest rate hike path.

Spot gold was down 0.19 per cent at $1,859.47 per ounce, as of 9.20am UAE time.

In the UAE, gold prices dropped one dirham per gram on Monday morning.

According to Dubai Jewellery Group data, 24K was trading at Dh225.0 per gram, down from Dh226.0 at the close of the markets over the weekend. While 22K, 21K and 18K opened at Dh208.5, Dh201.75 and Dh173.0 per gram, respectively.

The dollar edged up 0.1 per cent against its rivals. A stronger dollar makes greenback-priced gold more expensive for buyers holding other currencies.

Manish Jaradi, a strategist at dailyFX, said the upward pressure in gold and silver has faded over the past couple of weeks after surprisingly strong US jobs data, triggering a repricing higher in US Fed rate expectations.

“Philadelphia Federal Reserve President Patrick Harker’s remarks on Friday were comforting – he flagged the prospect of rate cuts in 2024 should inflation continue to ease and did not alter his view that moving to smaller interest rate rises would be a good strategy. Harker echoed Fed Chair Jerome Powell’s disinflation tone last week,” he said.