Gold prices fall in UAE as 24K drops to Dh536.75 per gram, tracking a global bullion slump after Fed comments raised expectations of a September rate hike and boosted the dollar and Treasury yields
Gold prices in the United Arab Emirates fell on Saturday, tracking a sharp decline in global bullion prices following comments by US Federal Reserve Chairman Kevin Warsh that boosted market expectations of another interest rate hike to counter persistent inflationary pressures.
According to prices announced in the local market, 24-carat gold was trading at about Dh536.75 per gram, while 22-carat gold stood at about Dh497 per gram and 21-carat gold at about Dh476.75 per gram. The price of 18-carat gold was about Dh408.50 per gram.
The decline came after gold lost about 3 per cent globally during Friday’s trading, as investors increased their bets on tighter US monetary policy.
The chances of a rate hike in September rose to around 58 per cent following Warsh’s remarks, alongside a rise in the US dollar and Treasury yields.
Gold typically comes under pressure in a high-interest-rate environment because it does not generate a yield, while a stronger dollar makes the metal more expensive for holders of other currencies.
Source: Emirates 24|7