Duba: Gold jewellery continued to lose its shine on Wednesday, dropping nearly Dh7 per gram in value over a seven-week period, as a slew of economic events unfolded.
The price of 24-karat gold moved lower to Dh153.75 as of 10.53am, the lowest since September 12, when the retail rate rallied to Dh160.50.
Other jewellery pieces have likewise fallen in value, with the 22K now selling at Dh144.50 and 21K and 18K carrying a price tag of Dh138 and Dh118.25 per gram, respectively.
Spot gold hit a low of $1,267.70 an ounce, a far cry from its recent rally of $1,306.04 last October 16. A series of developments and scheduled announcements this week is impacting the bullion’s performance.
The US Federal Reserve is set to meet again later today, while President Donald Trump is expected to reveal his choice for the next chairman of the monetary policy-making body.
A US federal inquiry, headed by former FBI director Robert Mueller, which is looking into Russia’s alleged meddling in the US elections last year, is being closely watched as well.
“[The Fed] meeting on Wednesday, a potential US Fed chair announcement on Thursday followed by the monthly US job report on Friday are just some of the drivers that the market has to deal with,” noted Ole Hansen, chief commodity strategy of Saxo Bank.
“Adding to that Mueller’s Russia probe and with that increased verbal attacks from the White House.”
According to Moneycontrol.com, gold prices are likely to drop further. "We expect gold prices to trade lower as the slew of economic events due to be released this week and the US Fed meeting are factors to be closely watched for."
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