Gold prices fell more than Dh1 per gram at the opening of the markets in the UAE on Monday.
According to Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh260.0 per gram on Monday morning, as compared to last week’s close of Dh261.25 per gram. Among the other variants, 22K opened at Dh240.75, 21K at Dh233.0 and 18K at Dh199.75 per gram.
Globally, spot gold was down 0.43 per cent to $2,147.3 per ounce at 9.20 am UAE time.
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Gold prices traded sideways after traders reacted to the stronger-than-expected US inflation data last week. The latter has stopped gold’s surge after a three-week winning streak as traders reevaluate their expectations regarding the Federal Reserve’s interest rate cuts this year.
“The unforeseen uptick in inflation has introduced a sense of uncertainty into the market, fueling price correction risks. At the same time, the resurgence in treasury yields last week exerted additional downward pressure on gold prices,” said George Pavel, general manager at Capex.com Middle East.
“However, markets continue to price in the start of interest rate cuts in June. Looking ahead, the trajectory of the gold market is likely to be heavily influenced by the outcome of the Federal Open Market Committee (FOMC) meeting this week. Investors could closely monitor the Federal Reserve’s economic projections as well as its president’s comments after the meeting for any indications of the central bank’s stance on monetary policy as a hawkish tone could further weigh on gold prices,” said Pavel.