Gold prices in Dubai fell on Wednesday as investors awaited the US Federal Reserve’s decision on whether policymakers remain inclined to raise rates further.
According to data by Dubai Jewellery Group, the 24K gold price was trading at Dh498.25 per gram at the market open on Wednesday, down from Dh504 at the close of the markets on Tuesday. It lost Dh5.75 in one day.
The other variants of the yellow metal, 22K, 21K, 18K, and 14K, were trading lower at Dh461.5, Dh442.5, Dh379.25, and Dh295.75 per gram, respectively.
Globally, the spot gold prices fell 0.62 per cent to $4,134.7 per ounce as of 9:10am UAE time. Silver also dropped 0.91 per cent to $60.71 per ounce.
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The precious metal fell as the US dollar strengthened, while at the same time investors awaited minutes of the latest Fed meeting due later today.
“Minutes will clarify the Fed’s monetary policy and the degree of support among policymakers for further rate increases and could reshape upcoming hike odds. Subsequent moves in long-term Treasury yields, the dollar, or oil prices triggered by any Middle East developments would then amplify the directional impact (on gold),” Frank Walbaum, a market analyst at Naga.com and who was quoted on Reuters, said.
According to a separate Reuters report, the US dollar will likely give up most of its recent gains over the coming year. The greenback has been boosted in recent weeks by the September Fed interest-rate hike. At one point rate futures markets priced nearly four more, the report said.
Source: Khaleej Times