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Dubai gold prices ease slightly as US dollar firms

Price of 24K pegged at Dh155.50 per gram, down by .50 fils from Thursday

Image Credit: Bloomberg
Gold is regarded by many as a store for wealth or hedge against inflation.

Dubai: The bullion’s recent major rally proved to be short-lived, with gold jewellery prices in Dubai easing slightly on Monday as the US dollar firmed.

The price of 24K stood at Dh155.50 per gram on Monday, down by .50 fils from Thursday, when the popular gold piece retailed at a high of Dh156 per gram.

In Asian trading, spot gold held steady at $1,283.30 an ounce by 0111 GMT, after surging to its highest in more than nine months on Friday at $1,300.80 an ounce, according to Reuters. The greenback also strengthened against the yen, showing an improvement from the previous session when it hit a four-month low.

Today’s jewellery rates in Dubai, however, are still higher when compared to the prices in the beginning of the month, when 24K was retailing at Dh154 per gram.

So far this year, the precious metal’s value has gone up by about Dh16 per gram, trading from only Dh139.50 per gram in January 1, 2017 to DhDh155.50 per gram on Monday.

The bullion’s price has been affected by a number of factors, including the interest rate increase speculations and most recently, the US-North Korea tensions.

Commenting on commodities’ performance on Friday, Ole Hansen of Saxo Bank said that the yellow metal set up another challenge at key resistance after the US Federal Reserve released details of its meeting in July.

“For a second consecutive week, it was gains among industrial and precious metals which prevent the asset class from suffering deeper losses.”

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