Dubai 22K Gold Price Falls Below Dh500 as Spot Gold Slips 0.5%; Jewellers Expect Strong Festive Demand.
Gold prices slipped in Dubai on Friday, with the price of 22K gold falling below Dh500 per gram.
According to Dubai Jewellery Group data, 24K gold was priced at Dh539.25 per gram on Friday, down from Dh542 at Thursday’s market close. That represents a decline of Dh2.75 per gram.
Other gold purities also edged lower in line with the broader market trend. The price of 22K gold stood at Dh499.25 per gram, while 21K was priced at Dh478.75, 18K at Dh410.25 and 14K at Dh320 per gram.
Falling gold prices could offer some relief to buyers ahead of major festivals such as Diwali, Dussehra and Navratri, when demand for gold traditionally increases.
Jewellers in the UAE expect strong demand for gold jewellery during the upcoming festival season.
Meanwhile, spot gold was down 0.5 per cent at $4,470 an ounce.
Joseph Dahrieh, managing director at Tickmill, said investors are also closely watching US nonfarm payrolls data, which could provide further clues about expectations for a September interest-rate hike.
“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, Dahrieh said Friday’s nonfarm payrolls report would be the next major market 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.
