On Monday, Gold prices dropped in the UAE at the opening of the markets.
On Monday, the Dubai Jewellery Group data showed 24K trading at Dh 232.75 per gram compared to last week’s close of Dh233.0 per gram. While 22K, 21K, and 18K were dealing at Dh215.5, Dh208.5, and Dh 178.75 per gram, respectively.
Moreover, Spot gold was $1925.89 per ounce at 9.10 am UAE time.
Bad Kooijman, CEO and Asset Manager of DHF Capital, said the release of the Federal Reserve’s minutes last week supported expectations of higher interest rates which could make gold less attractive in the face of higher yield risk-free assets.
He said, “The expectation of future rate increased, and the changing estimates regarding the peak rate could also play a role in undermining gold.”
Daniel McCarthy, strategist, daily FX, said the precious metal started the week holding onto the gains seen on Friday when the US dollar declined.
He concluded, ” Of potential concern for gold bulls is the run-up in US real yields. Tue real yield is the nominal yield less the market-priced inflation rate derived from Treasury inflation-protected securities for the same tenor.”
