Gold prices fell Dh1 per gram in the UAE on Friday morning as the US dollar jumped in early trade.
The 24K variant of the precious metal was trading at Dh231.75 per gram at the opening of the markets on Friday, down from Dh232.75 on Thursday morning.
Rates for 22K, 21K and 18K dipped to Dh214.5, Dh207.75 and Dh178 per gram, respectively, at 9am, local time.
Spot gold eased 0.11 per cent to $1,913.77 per ounce by 9.30am, UAE time.
The yellow metal slipped from a two-and-a-half-week high on Friday. It could be the first week of gains this month.
Investors will focus on Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde's speeches expected later in the day at the annual economic symposium in Jackson Hole, Wyoming, for further clues about interest rates.
Rania Gule, market analyst at XS.com, said gold has been rising this week as yields recede. However, with expectations of a prolonged period of higher federal interest rates, the short-term likelihood of an upward trend in gold seems limited.
“The rise in risk-free interest rates, such as US Treasury bonds, poses a significant challenge to interest-free assets like gold. Traders can obtain a rising 'risk-free' yield, making the case for keeping interest rates high over an extended period a downward pressure on gold. The current strong negative correlation between gold and yields has been evident in the recent decline in the 10-year bond yields, curbing the strength of the gold rally,” said Gule.
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