Dubai: Gold jewellery continued to trade lower in the UAE on Monday, as the bullion failed to gather enough support ahead of important monetary policy meetings.
The price of 24K dropped further to Dh154 per gram, down by more than Dh6 from a recent high of Dh160.75 more than a month ago.
Spot gold dropped 0.1 per cent to $1,271.50 per ounce as of 8.08 am. The Federal Open Market Committee of the US Federal Reserve is due to meet this week, as well as the England and Japan central banks. Results of the meetings can set the tone for gold prices.
Gold had earlier traded higher but the rally came to a halt in September. The price weakness continued in the month that followed, with the rates falling from $1,357 an ounce to $1,260 on October 6 mainly due to higher US nominal and US real yields.
The precious metal is forecast to go back up before the end of the year, with prices averaging again at $1,300 an ounce.
By the end of 2018, rates could go up to $1,450 an ounce, according to ABN Amro.
With additional inputs from Reuters
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