STOCK Gold souq Dubai
Gold sees strong trade at the Gold Souk in Dubai. Image Credit: Stefan Lindeque/Gulf News

Dubai: With gold prices pinned near nine-month lows, analysts are currently evaluating how the cost will likely drop further this week after a momentary pause.

In the UAE, the cost of 24-karat gold was at Dh211 per gram on Monday. Meanwhile, the price of 22-karat gold fell to Dh198.25 per gram, 21-karat to Dh189.25 and 18-karat to Dh162 in the UAE. Check the latest gold rates here.

Since July 6, the Dubai Gold Rate has been under Dh200 a gram, whereas as recently as July 2 it had been quoted at about Dh206.

Gold marked a fourth straight weekly loss on Friday, having hit its lowest since late September a few sessions prior. Globally, the spot price of gold held its ground at $1,741.84 per ounce on Monday.

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Brief pause before drop

US gold futures - indicative of near-term price trends - is seen at around $1,730 this week, but analysts evaluate the level won't be reached before a pause in prices.

"While gold prices remain below $1,753/oz it seems a move down to $1,720 is on the cards. Although there is some support around $1,730 ... given the bearish trend overall, any upside is likely to be a retracement, at best," wrote Matt Simpson, senior market analyst at UK-based trading service provider City Index Group.

"Gold has had a large move lower, and there comes a point where the market needs to pause for breath. And that's what we are seeing on gold right now," Simpson added.

Gold prices are currently hurt by the US dollar's ascent and bets for steep interest rate hikes gaining traction after healthy data out of the world's largest economy, the US. The dollar climbed back towards its highest level in about 20 years hit on Friday.

- with inputs from Agencies