UAE: Gold prices to continue downward trend

Gold prices fell to a more than one-week low on Tuesday, dented by the US dollar's gains.

UAE gold prices (per gram) as of Tuesday: 24K - Dh214.25; 22K - Dh201.25; 21K - Dh192; 18K: Dh164.75

"Expect gold to resume its downward trend this week as risk sentiment firms and markets continue to look towards the prospects of tightening monetary conditions from the Fed," Howie Lee, an economist at OCBC Bank, said in a note as per Reuters

Spot gold was down 0.5% at $1,768.90 per ounce by 0832 GMT, after touching $1,766.20, its lowest since June 21, earlier in the session. U.S. gold futures fell 0.7% to $1,767.80.

Bloomberg reported that analysts predict gold to be headed for the biggest monthly drop in more than four years.

The increasing global emergence of the Delta variant may have economic repercussions but the access to vaccines has dampened fears. JPMorgan Chase & Co. strategists led by Marko Kolanovic said to Bloomberg: "The economic consequences are likely to be limited given progress on vaccinations across developed market economies. It could, however, pose some risk of a delay in the recovery in countries where vaccination rates remain lower."