Dubai: Gold prices rise at the start of the week

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Gold prices rose on Monday morning, but a firmer dollar and concerns that the US Federal Reserve might keep hiking interest rates kept bullion below the key $1,900-an-ounce level.

Spot gold was up 0.63 per cent at $1,877.08 per ounce as of 9.15 am UAE time.

Gold prices opened higher in Dubai on the first trading day of the week.

The Dubai Jewellery Group data showed 24K opening at Dh227.5 per gram on Monday, as compared to last week’s close of Dh225.75. Meanwhile, 22K, 21K and 18K were trading at Dh210.75, Dh204.0 and Dh174.75 per gram, respectively.

The yellow metal dropped about 2.5 per cent on Friday, after data showed US job growth accelerated sharply last month, and the unemployment rate hit a more than 53-1; in other words, a 2-year low of 3.4 per cent.

Christopher Wong, forex strategist at OCBC, said markets were initially looking for the first-rate cut to come in the third quarter of 2023, but expectations for the first cut have now been pushed back to November-December 2023.

"Markets are now expecting the Fed to keep peak rate (still around 5 per cent) on hold for longer. This could depress gold's appeal in the interim," he said.