Dubai: Gold was back in the red territory on Monday retailing at cheaper rates compared to about a week ago, with Dubai prices dropping by as much as Dh2 per gram.
The US dollar weakened against other currencies, dropping to 94.913, its lowest since August 26, as the euro increased as much as 0.3 per cent.
As of Monday, the price for 24-carat gold in Dubai was pegged at Dh134 per gram, down 1.47 per cent from Dh136 on September 6. Prices for 22K, 21K and 18K also dropped to Dh127.50, Dh122.25 and Dh105.75, respectively.
Spot gold stood at $1,108.06 an ounce by 0633 GMT, after dropping 0.3 per cent last week, according to Retuers.
The uncertainty over the US Federal rate policy is impacting gold prices. The Fed will meet for two days starting on Wednesday and is expected to take a decision on the hotly anticipated interest rate increase.
Some analysts are expecting gold prices to spike down again this week to test the $1,100 level.
Rolf Schneebeli, CEO of Gold Services AG, said that the interest rate increase in the US is now more likely to happen “after some good economic figures” were released recently.
“For the coming days, I would see a testing of the $1,100 level but would think that it will hold. Any drop below [that] is a good opportunity to buy with a short-term view,” Schneebeli told Gulf News.
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