Dubai gold prices drop: 24K falls to Dh213 per gram

Dubai - Gold set for biggest monthly drop since 2016.

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By Staff Report

Published: Wed 30 Jun 2021, 9:21 AM

Gold prices fell on Wednesday morning ahead of the US non-farm payrolls data, heading towards its worst monthly drop in more than four years.

Spot gold eased 0.94 per cent to $1,761.57 per ounce at 9.15am UAE time.

In the UAE, gold prices fell two dirhams per gram on Wednesday morning as compared to Tuesday morning rates.

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The Dubai Gold and Jewellery Group data showed 24K price fell falling from Dh215.0 per gram on Tuesday morning to Dh213.0 on Wednesday. Among the other variants, 22K dropped from Dh201.75 to Dh200.25; 21K dipped from Dh192.5 to Dh191; and 18K slipped from Dh165.0 to Dh163.75.

Bullion prices were down 7.5 per cent for the month, weighed down by the Fed’s sudden hawkish shift. But they were up 3.3 per cent for the quarter.

“Gold has consolidated near the lows since the Fed’s strategy shift on monetary policy and it is now awaiting US economic data for further guidance,” said DailyFX currency strategist Ilya Spivak.

“Non-farm payrolls on Friday is going to be the main driver for the market in the near term, if it shows higher wage inflation and strong job growth, we’ll see the next floor in gold.”

US nonfarm payrolls are likely to rise by 690,000 jobs this month, compared with 559,000 in May, according to a Reuters poll.

Fed Governor Christopher Waller said on Tuesday he was “very optimistic” about the economy and that the central bank could start raising interest rates next year.

A Fed rate hike will increase the opportunity cost of holding bullion, dulling its appeal.

On the technical side, the failure of gold to break through the 100-day moving average was a bearish sign that could prompt so far patient exchange-traded fund (ETF) investors to join in on the selling, ANZ said in a note.

(With inputs from Reuters)

KT file photo
Staff Report

Published: Wed 30 Jun 2021, 9:21 AM

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