Gold slips further due to Fed rate hike uncertainty

Dubai: Retail gold prices in Dubai slipped further on Tuesday as the US dollar strengthened against the euro and the timing of an interest rate increase in the US remains unclear.

Gold was retailing at Dh140.50 per gram for 24 carat as of 11.30am in Dubai, down from Dh140.75 late Monday. The price for 22K stood at Dh133.50, while 21K and 18K traded at Dh127.75 and Dh110.50 per gram, respectively.

The bullion had rallied last week after gaining support from lower expectations of a US Federal rate increase and weaker US dollar. The precious metal, however, retreated following the release of positive consumer price index (CPI) data in the US.

According to preliminary figures released on Friday, consumers in the US are now more optimistic about the country’s current and future economic conditions, with the overall sentiment rising to 92.1 in October from 87.2 in September this year, beating market expectations.

Despite the short-lived spike, Tuesday’s prices are still higher compared to the beginning of the month, when 24-carat gold was retailing at Dh134.25 per gram.

Spot gold was selling at $1,171.75 an ounce as of 0653 GMT after losing about 1.2 per cent in the past three sessions, according to a Reuters report.

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