Dubai: Gold jewellery consumers in Dubai might just be getting a quick respite from high prices this week, as the bullion started to show some signs of weakness on Wednesday.
After rallying to a seven-week high, the precious metal suffered a setback due to a strong US dollar. Profit taking by investors has also dampened the upside momentum in gold rates.
Spot gold dipped to $1,264.88 per ounce by 0411 GMT, according to Reuters. That’s a .71 per cent drop from the prices the day before, when the yellow metal hit $1,273.97, the highest since June 14.
In Dubai, the price of 24K stood at Dh153.25 per gram, down by .75 fils from Dh154 per gram on Monday. Other jewellery prices have likewise gotten less pricey, with the 22K retailing at Dh144 per gram, and 21K and 18K selling for Dh137.25 and Dh117.75 per gram, respectively.
Sentiments towards the US interest rates still remain in focus, with some analysts speculating that the bullion will again strengthen if the Federal Reserve continues to be in favour of keeping interest rates low to fuel the economy.
A development to watch out for is the release of labour data in the US on Friday, which would have an impact on the dynamics in the gold market.
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