Gold prices plunged in the UAE but were flat in early Asian trade on Tuesday morning, after falling more than 1.5 per cent in the previous session as the US dollar rebounded on bets that strong economic data may prompt bigger interest rate hikes by the Federal Reserve.

In the UAE, 24K gold prices plunged over two dirhams per gram at the opening of the markets on Tuesday. The Dubai Gold and Jewellery Group data showed 24K trading at Dh214.75 per gram on Tuesday as compared to last night’s close of Dh217.0 per gram.

While 22K, 21K and 18K also opened lower at Dh201.75, Dh192.5 and Dh165.0 per gram, respectively.

Spot gold was trading at $1,775.69 per ounce.

Daniel Dubrovsky, Senior Strategist at DailyFX, said gold prices sank over 1.6 per cent on Monday, offering a pessimistic start to the new trading week.

“The anti-fiat yellow metal was pressured by a combination of a surging US dollar and Treasury yields, likely reflecting more hawkish Federal Reserve monetary policy expectations,” he said.