Precious metal prices are likely to end the month around two per cent higher, the most since March
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Gold prices slipped in the UAE at the opening of the markets on Monday, but they’re set for their biggest rise in four months.
According to Dubai Jewellery Group data, the 24K was trading at Dh236.75 per gram on Monday, down from Dh237.25 per gram at the close of the markets last week. While 22K, 21K and 18K opened at Dh219.25, Dh212.25 and Dh181.75 per gram, respectively, at 9 am UAE time.
Spot gold was down 0.28 per cent at $1,954.16 per ounce at 9.20 am UAE time.
With the US dollar set for its second straight monthly decline amidst interest rates nearing their peak, the precious metal prices are likely to end the month around two per cent higher, the most since March.
Manish Jaradi, Strategist, dailyFX, said interest rate hikes by the US Federal Reserve and the European Central Bank are keeping a lid on gold.
“However, Fed Chair Jerome Powell and ECB President Christine Lagarde sounded more neutral at the respective press conferences, boosting expectations that interest rates are close to peaking,” said Jaradi.
Higher interest rates discourage the buying of non-interest-paying bullion, which is priced in dollars.
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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.