Dubai Gold Prices Drop 22K Slips Below Dh500 Per Gram
According to Dubai Jewellery Group data, the 24K gold price fell to Dh539.25 per gram on Friday, down from Dh542 at the close of markets on Thursday, losing Dh2.75 per gram.
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The other metals also slipped in line with the market trend, with 22K trading at Dh499.25, 21K at Dh478.75, 18K at Dh410.25 and 14K at Dh320 per gram.
Falling gold prices are good news ahead of big festival buying such as Diwali, Dussehra and Navratri.
Jewellers in the UAE expect good demand for gold jewellery during the festival season.
Spot gold was down half a per cent at $4,470 an ounce.
Joseph Dahrieh, managing director at Tickmill, said investors also remain focused on the US nonfarm payrolls data, which could further provide clues on September rate-hike bets.
“Softer August ADP payrolls of 38,000, below forecasts, helped ease September Fed-hike odds to around 62 per cent from about 68 per cent, underpinning gold prices. Japanese yields fell, adding support. However, gold could remain exposed to the downside after last week's hawkish remarks by Fed Chair Kevin Warsh and this week's oil-driven inflation concerns from renewed US-Iran tensions. Any new escalations and higher oil prices could push the metal down,” he said.
Looking ahead, he said, Friday's nonfarm payrolls report is the next major driver.
“A weak reading could lead to a cut in hike bets and further extend gold's bounce. Stronger jobs data may lift yields again and cap gains. Markets will also watch today's jobless claims and ISM services survey, as well as any shifts in Middle East tensions and oil prices, which remain a source of inflation risk,” he added.
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