UAE: Gold prices drop to one-month low
Spot gold fell 0.3 per cent to $1,703.3 per ounce
Gold prices slipped to a more than one-month low on Thursday morning, as the dollar firmed and prospects of the US Federal Reserve continuing with its aggressive policy tightening stance weighed on the zero-yielding bullion’s appeal.
Spot gold fell 0.3 per cent to $1,703.3 per ounce by 9.15am UAE time.
The precious metal prices fell in the UAE in line with the drop in global rates.
The Dubai Gold and Jewellery Group data showed 24K price plunging by one-and-a-half dirham to Dh206.25 per gram at the opening of the markets on Thursday. While 22K, 21K and 18K were trading at Dh193.75, Dh185.0 and Dh158.5 per gram, respectively.
Daniel McCarthy, a strategist at DailyFX, said the gold price has resumed descending as the ramification of last week’s Jackson Hole symposium continues to be felt across asset classes.
Federal Reserve Chair Jerome Powell last week said that the Federal Open Market Committee’s (FOMC) overarching focus right now is to bring inflation back down to two per cent.
“Of course, this has been the narrative for some time, but after the July FOMC meeting, the market appeared to misinterpret Powell’s remarks in regard to the Fed’s target rate being near neutral,” he said.