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UAE: Gold prices drop in Dubai on more rate hikes expectations

24K trading at Dh238.0 per gram at the opening of the markets on Thursday

Published: Thu 1 Jun 2023, 9:27 AM

Updated: Mon 5 Jun 2023, 2:12 PM

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Gold prices fell in UAE and globally on Thursday morning as investors expect more interest rate hikes by the US Federal Reserve.

The Dubai Jewellery Group data showed 24K trading at Dh238.0 per gram at the opening of the markets on Thursday, down from Dh238.75 per gram at the close of the markets on Wednesday.

The other variants of the precious also opened lower as 22K was trading at Dh220.25, 21K at Dh213.25 and 18K at Dh182.75 per gram on Thursday morning

Globally, spot gold was trading at $1,964.41 per ounce at 9.10 am UAE time, down by 0.11 per cent.

Daniel McCarthy, a strategist at dailyFX, said interest rate markets see little chance of a hike in June but are scoping around an 80 per cent probability of a 25 basis point lift at the July conclave.

“The path for US interest rates is somewhat uncertain and the impact on the Treasury market might be more volatility. This could translate into choppy trading conditions for the US dollar. In turn, gold may see movements dependent on these factors,” he said.

Brian Lan, a dealer at GoldSilver Central, sees gold could trade higher near the $1,980 level in the short term. “But don't expect an extreme move upside because markets are still speculating more rate hikes by the Fed,” he said.

He sees support at $1,955 on the downside.

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