Gold prices drops in Dubai as festive season approaches
Gold prices lingered at a three-week trough on Thursday, pressured by rising US dollar and Treasury yields amid worries that the Federal Reserve will persist with sharp rate hikes.
Spot gold inched down 0.1 per cent to $1,627.04 per ounce on Thursday morning.
In the UAE, the 24K gold prices slipped to Dh197.75 per gram at the opening of the markets on Thursday, down by Dh0.25 from its last night’s close. While 22K, 21K and 18K opened at Dh185.75, Dh177.25 and Dh152.0 per gram, respectively.
Edward Moya, a senior market analyst at Oanda, said gold bulls keep licking their wounds as the king dollar trade won’t go away.
“Gold ETF purchases are not gaining any interest and weakening outlooks across China and India will weaken the normally attractive time to buy gold. The bond market still tells gold where it is going and with Treasury yields making a strong move higher, non-interest bearing gold is in trouble,” he said.
Moya warned that if gold breaks below the $1,620 level, it could get even uglier for gold.
“The psychological $1,600 level might not prove too strong of a support level for gold, which could lead to a plunge to the $1,550 level,” he added.
