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UAE: Gold prices slip further in Dubai

Spot gold was down 0.21 per cent at $1,959.97 per ounce by 9.34am UAE time.

Published: Tue 1 Aug 2023, 9:48 AM

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Gold prices fell in the UAE on Tuesday morning as the US dollar strengthened and investors looking forward to key economic data to be released this week.

The Dubai Jewellery Group data showed 24K trading at Dh237.25 per gram at the opening of the markets on Tuesday, down from last night’s close of Dh238.75 per gram. While 22K, 21K and 18K also opened lower at Dh219.75, Dh212.75 and Dh182.25 per gram, respectively, at 9 am UAE time.

Spot gold was down 0.21 per cent at $1,959.97 per ounce by 9.34am UAE time.

The precious metal closed July 2.3 per cent higher, the biggest monthly rise in four months on expectations that interest rate hikes were nearing their end.

Vijay Valecha, chief investment officer, Century Financial, said as inflation levels continued to fall, the market participants felt confident that the Federal Reserve along with other central banks were nearing their aggressive monetary policy.

“This provided strong support to the non-yielding metal which found a strong support near the $1,900 level. Data on Friday showed annual US inflation rose at its slowest pace in more than two years in June, cementing expectations that the Federal Reserve was closer to ending its fastest rate hiking cycle since the 1980s. Two European Central Bank policymakers on Friday also raised the prospect of an end to the ECB’s steepest and longest string of rate rises. Higher interest rates discourage the buying of non-interest-paying bullion, which is priced in dollars,” said Valecha.

This week, the US July jobs report and ISM surveys on manufacturing and services will be scanned to assess the impact of higher borrowing costs on the economy.

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