UAE: Gold prices slip Dh1.5 in Dubai after hitting 3-week high

Prices fall as US dollar, bond yields powered higher after Fed signalled another rate hike, tighter monetary policy through 2024 than previously expected

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Waheed Abbas

Published: Thu 21 Sep 2023, 9:37 AM

Last updated: Mon 25 Sep 2023, 10:40 AM

Gold prices retreated in the UAE and globally on Thursday morning, trading at Dh1.50 per gram lower at the opening of the markets in Dubai.

The prices fell as the US dollar and bond yields powered higher after the Federal Reserve signalled another rate hike this year and a tighter monetary policy through 2024 than previously expected.

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In Dubai, the 24K was trading at Dh233.5 per gram on Thursday morning, down from Dh235.0 at the close of the markets on Wednesday. Similarly, 22K, 21K and 18K also opened lower at Dh216.25, Dh209.25 and Dh179.25 per gram, respectively.

Spot gold slid to $1,928.13 per ounce by 9.15 am UAE time

Spot gold prices on Wednesday hit their highest since September 1 before the US Fed revised its economic projections with higher-for-longer rate warnings.

Daniel Dubrovsky, contributing senior strategist, dailyFX, said gold prices turned lower in the aftermath of the Federal Reserve monetary policy announcement as Jerome Powell basically alluded to a ‘higher for longer’ approach, causing financial markets to price in a higher terminal Federal Funds rate and pushing back expectations of rate cuts further down the time horizon.

“In response, Treasury yields and the dollar rose, working together to pressure precious metals, like gold and silver, lower,” he said.

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Waheed Abbas

Published: Thu 21 Sep 2023, 9:37 AM

Last updated: Mon 25 Sep 2023, 10:40 AM

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