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Gold prices in Dubai fell further on Monday, with 14-karat gold dropping below Dh300 per gram as the precious metal came under pressure from a stronger US dollar.
The price of 24-karat gold opened at Dh498 ($135.5) per gram, down from Dh499 over the weekend, according to Dubai Jewellery Group data. The price has fallen by Dh35.75 over the past month.
The decline came as a stronger US dollar weighed on gold, although softer US economic data helped limit the losses, according to Khaleej Times.
How much does gold cost in Dubai today?
Dubai’s gold prices stood at Dh498 per gram for 24K gold on Monday, according to Dubai Jewellery Group data. Prices for other purity levels were Dh461 for 22K, Dh442 for 21K, Dh379 for 18K and Dh295.50 for 14K gold.
Spot gold was down 0.18% at $4,132.20 an ounce, while silver gained 0.84% to $60.92 an ounce.
Why are gold prices falling?
The stronger US dollar has put pressure on gold, making the metal more expensive for buyers holding other currencies.
However, softer US economic data has helped cushion the decline by reducing expectations of another Federal Reserve interest-rate hike this month.
Vijay Valecha, chief investment officer and financial analyst at Century Financial, said last week that markets had lowered the probability of an October rate hike to about 50%, from around 70% previously.
The shift followed comments by John Williams, president and CEO of the Federal Reserve Bank of New York, who indicated that one more interest-rate adjustment could be sufficient later this year.
What could affect gold prices next?
US Treasury yields remain a key risk for gold. The 30-year Treasury yield rose above 5.61%, its highest level since 2002, Valecha said.
Investors will now watch upcoming US economic data, including the core personal consumption expenditures price index and the non-farm payrolls report, for clues about the Federal Reserve’s interest-rate path.
Valecha said gold could retest support around $4,120 an ounce before attempting further gains.
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