Dubai: Gold got cheaper on Monday compared to a week earlier, as the bullion suffered its first setback for the month amid a recovering US dollar.
Jewellery prices in Dubai slipped by about Dh2 per gram from Thursday, providing an opportunity for gold fans to score some bargains. As of 3.16pm, 24K was retailing at Dh149.50 per gram, down from Dh151.50 last week.
Spot gold dropped 0.7 per cent at $1,233.16 an ounce at 1130 GMT, according to Reuters.
Olen Hansen of Saxo Bank said that the precious metal continues to suffer amid the “hawkish shift in tone” from central banks last week. “The dollar is recovering, not least against the Japanese yen, while bond yields holds onto the higher levels reached last week; the stock market wobble has faded,” Hansen wrote on Monday.
The precious metal is expected to remain volatile this week, according to Karim Merchant of Pure Gold Jewellers in Dubai.
“As most governments including USA normalizes interest rates, gold will continue to be under pressure in the medium to long term,” said Merchant.
“The dollar has weakened throughout last week and central banks including the Bank of England and the Bank of Canada have made hawkish statements about their interest rates. Political, and other related factors will keep gold price moment volatile this week.”
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