Dubai: Gold slips, 22K trades at Dh203 per gram

Spot gold fell 0.1 per cent to $1,781.78 per ounce on Monday morning.

By Staff Reporter

Published: Mon 1 Nov 2021, 9:42 AM

Gold prices fell on Monday morning, extending the previous session's losses, as the dollar strengthened after data showing another advance in inflation fuelled bets over the Federal Reserve tightening its policy sooner.

Spot gold fell 0.1 per cent to $1,781.78 per ounce on Monday morning, after slipping to an over one-week trough on Friday. US gold futures dropped 0.1 per cent to $1,782.80.

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In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh216.0 per gram, 22K at Dh203.0, 21K at Dh193.75 and 18K at Dh166.0 per gram on Monday morning.

Vijay Valecha, chief investment officer at Century Financial, said during the tapering of bond purchases in 2013, gold tended to trade in a range with a bearish bias, and it broke out above the range only after the 2018 interest rate cuts. “The same pattern is likely to repeat. In the UAE, 24K gold is likely to trade in a Dh221 to Dh213 per gram range,” he said.

The US dollar steadied close to its highest level since October 13 hit on Friday, making gold less appealing to buyers holding other currencies.

Data released on Friday showed the jury was still out on the US Federal Reserve’s claim that current price spikes are transitory and should moderate with time, with the personal consumption expenditures price index advancing last month to continue a run of inflation at levels not seen in 30 years.

waheedabbas@khaleejtimes.com