Dubai gold prices fall; 24K drops below $58

Investors waiting for the US Fed’s policy statement due out later today

  
People walk in front of a gold shop in Gold Souq in Dubai, United Arab Emirates, December 30, 2018.

People walk in front of a gold shop in Gold Souq in Dubai, United Arab Emirates, December 30, 2018.

REUTERS/ Hamad I Mohammed

UAE - Gold prices fell on Wednesday morning, pulled down by firmer US Treasury yields.

Gold was trading at $1,771.52 an ounce at 9.15am UAE time, down by $9.55 an ounce or half a per cent. In Dubai, 24K gold retail price fell from Dh215.75 per gram on Tuesday morning to Dh214.5 on Wednesday.

Similarly, prices of 22K, 21K and 18K also fell in Dubai on Wednesday morning in line with the decline in global rates. Prices of 22K fell to Dh203, 21K to Dh193.5 and 18K to Dh166 on Wednesday.

Market participants awaited the US Fed's statement due later in the day for cues on the central bank's monetary policy.

A Reuters poll revealed on Tuesday that analysts and traders have slashed their gold price forecasts, with many believing a return to last year's record highs is unlikely as economic recovery tarnishes the safe-haven metal's appeal.

Meanwhile, benchmark US 10-year Treasury yields rose to their highest since April 15, increasing the opportunity cost of holding non-yielding bullion.

 

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