Dubai: More bargains await jewellery fans who will hit the shops in Dubai this week, as the bullion remains weak and looks set to tumble further.
Gold jewellery prices in Dubai continued to fall on Monday, with some pieces offering up to Dh10 per gram in savings when compared to peak prices in June.
The price of 24K gold further tumbled to Dh146.50 per gram as of 2:17pm in Dubai, down by Dh2 per gram from last week and Dh10 per gram from one of its highest levels last month. Last June 7, 24K was retailing at Dh156.50 per gram.
Spot gold fell to $1,204.45 an ounce, its lowest since March 15 before touching $1,207.27 an ounce by 0938 GMT on Monday, according to Reuters.
Gold’s decline has been triggered by stronger-than-expected labour data. The American economy generated an additional 222,000 jobs in June, according to the Labour Department.
The news prompted many in the markets to speculate that the US Federal Reserve will again increase the interest rates.
“Gold prices fell due to stronger-than-expected US employment data indicating that the US economy may be in a better shape than expected by most,” explained Karim Merchant, group CEO and managing director of Pure Gold Jewellers.
“This may act as an indicator to Fed to further increase and stabilize interest rate which will create more pressure on gold prices.”
Merchant said he expects the bullion to trade in the range of $1,200 to $1,225 an ounce this week.
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