Dubai: Gold jewellery prices in the UAE have dropped after hitting their highest this year, as the bullion weakened slightly ahead of the US Federal Reserve meeting that will kick off on Tuesday.
As of 9.30am on Monday, 24K gold was retailing at Dh160 per gram, cheaper by nearly Dh2 per gram when compared with prices early this month.
Jewellery pieces have been quite expensive for UAE consumers this month, with 24K gold hitting as much as Dh161.75 per gram last September 5.
Spot gold hit $1,315.10 an ounce, its lowest since August 31 before settling at $1,317 by 0423 GMT, as Asian shares rallied and the US dollar inched ahead, according to Reuters.
The markets are keeping an eye out for the results of the two-day Federal Open Market Committee (FOMC) meeting that can have an impact on the precious metal.
Analysts are somewhat split on where gold prices are headed this week. In Kitco’s latest gold survey, half of Wall Street professionals are positive that the precious metal will do well, while the same number in Main Street aren’t optimistic.
The US dollar has been firming up, while gold and other metals have been under pressure from profit-taking. Rising US inflation, North Korean missile fatigue and weaker economic data from China are also some of the key drivers, according to Ole Hansen, head of commodity strategy at Saxo Bank.
“Apart from the stronger dollar, several weeks of fund buying in both gold and copper had left both metals exposed,” said Hansen in a note. “The safe-haven trade looked tired after another notch up in geopolitical tensions failed to lift gold and [Japanese yen].”
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