In the last week, bullion attempted to recover, briefly reaching $1,983, but quickly reversed course and retreated heading into the weekend
File photo
Gold prices opened lower in the UAE on the first trading day of the week after a strong US payrolls report pushed the US dollar higher and took the sheen away from the precious metal.
The 24K prices in Dubai fell half a dirham per gram at the opening of the markets on Monday to trade at Dh235.5 per gram. While 22K, 21K and 18K were trading at Dh218.25, Dh211.25 and Dh181.0 per gram, respectively.
Spot gold was down 0.27 per cent at $1,944.14 per ounce as of 9.15 am UAE time.
The precious metal prices fell over one per cent on Friday after US nonfarm payrolls rose by 339,000 jobs last month, surpassing forecasts by economists. However, the unemployment rate in the US rose to 3.7 per cent from a 53-year low of 3.4 per cent in April.
According to dailyFX, the yellow metal has undergone a large downward correction from its May highs of around $2,070, down nearly 6 per cent from those peak levels in a short period of time.
In the last week, bullion attempted to recover, briefly reaching $1,983, but quickly reversed course and retreated heading into the weekend to settle slightly below the $1,950 threshold.
“The metal’s lack of ability to maintain bullish impetus can be attributed to US interest rate dynamics, specifically their recent upswing,” said Diego Colman, a strategist at dailyFX.
ALSO READ:
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.