Gold eased as the US dollar remained firm, while weaker economic data helped limit losses.
Dubai gold prices were largely steady at the start of the week after falling by Dh35.75 per gram over the past month.
The 24K variant opened at Dh498 per gram on Monday, down slightly from Dh499 over the weekend, according to data from the Dubai Jewellery Group.
Other variants also remained at lower levels, with 22K trading at Dh461 per gram, 21K at Dh442, 18K at Dh379 and 14K at Dh295.50.
In international markets, spot gold slipped 0.18 per cent to $4,132.20 an ounce, while silver gained 0.84 per cent to trade at $60.92.
Gold came under pressure as the US dollar remained firm, although losses were limited after recent weaker economic data sharply reduced expectations of a Federal Reserve rate hike this month, according to Reuters.
Vijay Valecha, financial analyst and CIO at Century Financial, said last week that investors had lowered the probability of an October rate hike to around 50 per cent, compared with earlier estimates of 70 per cent.
The shift in expectations followed comments from John Williams, president and CEO of the Federal Reserve Bank of New York, suggesting that one further rate adjustment may be sufficient later this year.
Valecha also highlighted rising US Treasury yields as a potential risk to gold’s recovery, with the 30-year yield climbing above 5.61 per cent, its highest level since 2002.
He said upcoming US economic indicators, including the core personal consumption expenditures (PCE) price index and non-farm payrolls report, would be crucial in determining gold’s near-term direction.
Gold could retest support around $4,120 before attempting further gains, Valecha added.
