In a continuation of a downward trend, gold prices in the UAE saw further reduction, reaching Dh227.0 per gram on Thursday at the market opening, a drop from the previous close of Dh228.5 per gram, according to the Dubai Jewellery Group data. Other karats experienced a similar decline, with 22K, 21K, and 18K trading at Dh210.25, Dh203.5, and Dh174.5 per gram, respectively.
This drop in prices is reflective of the global trend where spot gold decreased by 0.15% to $1,874.8 per ounce by 9.10am UAE time, following a significant 1.4% decline the previous day, marking the largest daily decline in two months.
Vijay Valecha, the Chief Investment Officer at Century Financial, attributes this decline to market adjustments in anticipation of potential interest rate hikes. The US dollar’s surge to a 10-month high against major currencies, along with a rise in Treasury yields, is exerting additional pressure on the precious metal.
Investors are keenly awaiting the release of pivotal economic indicators, including the Personal Expenditures (PCE) index, and the monthly employment and Consumer Price Index (CPI) reports from the Labor Department. Valecha emphasized that these forthcoming data releases would significantly influence market sentiment and could potentially impact the Federal Reserve’s monetary policy decisions.