Dubai Jewellery Group Data Shows 24K Gold Opened at Dh498.25 per Gram, Down From Dh504.
Gold prices in Dubai declined on Wednesday as investors turned their attention to the US Federal Reserve for further signals on the direction of interest rates.
According to Dubai Jewellery Group data, 24K gold opened at Dh498.25 per gram on Wednesday, falling below the Dh500 mark after closing at Dh504 per gram on Tuesday. The precious metal lost Dh5.75 per gram in a single day.
Other gold categories also moved lower. The 22K variant was trading at Dh461.50 per gram, while 21K stood at Dh442.50. Meanwhile, 18K and 14K gold were priced at Dh379.25 and Dh295.75 per gram, respectively.
Internationally, spot gold declined 0.62 per cent to $4,134.70 an ounce as of 9.10am UAE time. Silver also fell, dropping 0.91 per cent to $60.71 an ounce.
Gold came under pressure as the US dollar strengthened, while investors awaited the minutes from the Federal Reserve’s latest meeting for further clues about the outlook for monetary policy.
Frank Walbaum, a market analyst at Naga.com, said the minutes could provide greater clarity on the Fed’s policy direction and reveal the level of support among policymakers for additional interest-rate increases.
He added that changes in long-term US Treasury yields and the dollar, as well as movements in oil prices linked to developments in the Middle East, could further influence the direction of gold prices.
Separately, a Reuters report indicated that the US dollar could surrender much of its recent gains over the coming year. The greenback has strengthened in recent weeks following the Federal Reserve’s September interest-rate increase.
At one stage, interest-rate futures markets were pricing in the possibility of nearly four additional rate increases, according to the report.
