Dubai: The price of gold dropped to near one-year low on Wednesday, offering jewellery fans in Dubai another chance to score some bargains, the latest data showed.

In just one day, the retail rate for 24-karat (24K) gold in Dubai dropped by Dh1.50 per gram in value, from Dh150.25 to Dh148.75.  

The bullion hovered near its lowest since July 2017 during the morning session following heightened speculations of higher US interest rates and a stronger US dollar.

Jerome Powell, chairman of the US Federal Reserve said on Tuesday that gradually increasing the interest rates could be the “best way forward,” underpinning speculations that more rate hikes are still on the cards.

“Powell’s comments reinforced views that the central bank is on track to gradually raise interest rates,” said Vijay Valecha of Century Financial “ Data showed that industrial production rose in June, boosted by a sharp rebound in manufacturing and further gains in mining output, the latest sign of robust economic growth in the second quarter.”

Valecha noted that gold prices have technically gone below the “important swing low” of $1,236 an ounce, which is a negative sign.

“However, prices are nearing support level of $1220 - $1215, which is likely to act as short term support. The weekly close for the prices are likely to be the most important during this week. On the upside a move above $1225 would push the prices higher towards $1232 - $1236 level.”