UAE: Gold prices hit over 3-month low; 22K below Dh200 per gram

Gold prices hit their lowest in more than three weeks on Monday morning, weighed down by a stronger dollar and expectations of more rate hikes from the US Federal Reserve to tame surging inflation.

Spot gold was down at $1,743.46 per ounce, down by 0.11 per cent as of 9.12am UAE time.

In the UAE, the 24K price fell to Dh211.25 per gram on Monday morning, down by half a dirham per gram. Similarly, 22K, 21K and 18K opened lower at Dh198.5, Dh189.25 and Dh162.25 per gram, respectively.

In the latest Fed commentary, James Bullard, president of St. Louis Fed Bank, said he is considering support for a third straight 75-basis point rate hike in September and said he is not ready to say the economy has seen the worst of the inflation surge.

“The US central bank's hawkish stance has pushed up the dollar to a one-month high against major rivals, making gold more expensive for buyers holding other currencies. Meanwhile, profit booking near the $1,800 mark also weighed on the safe-haven metal. Going forward, all eyes are on the Jackson Hole Symposium scheduled next week with the re-pricing of Fed expectations set to drive the market,” said Vijay Valecha, chief investment officer at Century Financial.

• Fed to slow to 50 basis-point hike next month, recession worries grow: Reuters poll