Dubai gold prices drop further; 24K falls below $57.22 per gram

The eagerly-anticipated US inflation data appears to be the tipping point behind the dip

  
A man wearing a protective face mask as a preventive measure against coronavirus disease (COVID-19), walks at the Deira Gold Souq in Dubai, United Arab Emirates, March 18, 2020.

A man wearing a protective face mask as a preventive measure against coronavirus disease (COVID-19), walks at the Deira Gold Souq in Dubai, United Arab Emirates, March 18, 2020.

REUTERS/Satish Kumar

Gold prices in Dubai slipped further on Tuesday by a dirham per gram, as global investors stayed on the sidelines ahead of the US inflation data, which is likely to give more insights into the recovery of the world’s largest economy.

In Dubai, 24K retail gold fell below Dh210 per gram on Tuesday morning in line with the drop in global rates of the precious yellow metal.

24K gold was priced at Dh209.50 per gram. Meanwhile, 22K and 21K retail prices also slipped one dirham per gram to Dh196.75 and Dh187.75, respectively. The 18K price also fell Dh0.75 to Dh161, according to Dubai Gold and Jewellery Group data.

Globally, spot gold was down 0.85 per cent, or $15 an ounce at $1,729 per ounce by 9.30am UAE time, with elevated US Treasury yields, negating support from expectations of higher inflation.

A survey released on Monday by the Federal Reserve Bank of New York showed US consumers raised their inflation expectations again in March after gradual increases in recent months and became more positive about the job market.

"It's hard to imagine that gold will not gain today if the data shows higher inflation, but there is a big chance of it pulling back later this week if retail sales data comes positive on Thursday," said Stephen Innes, chief global market strategist at financial services firm Axi.

 

Copyright © 2021 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Commodities