Dubai: Gold extended its loss for the second straight day, dropping by as much as Dh2 per gram on Wednesday morning, as the US dollar climbed on the back of expectations that interest rates in the US would increase next month.
As of 11.40am, 24-carat gold was retailing at Dh128.75 per gram in Dubai, down by 1.5 per cent from Monday. The price for 22K stood at Dh121.75, while 21K and 18K traded at Dh116.50 and Dh100, respectively.
Spot gold was down 0.20 per cent at $1,068.6 as of 0353 GMT, after falling to $1,064.95 earlier in the day, the lowest since February 2010, according to Reuters. Prices of the precious metal have dropped for 15 out of 16 sessions.
Interest rate expectations were shored up by the release of positive data in the US on Tuesday. The Bureau of Labour Statistics reported that the American consumer price index (CPI) increased 0.2 per cent in October.
Analysts had said that strong expectations of a Federal Reserve interest rate increase this December will continue to put the precious metal under pressure.
“Our above-consensus Fed call should push gold prices towards $1,000 per ounce this year and $900 per ounce in 2016 mainly because of investor position liquidation,” said ABN Amro in its latest analysis.
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