Gold prices fell even more in the UAE on Friday, falling by nearly Dh3 per kilogram at the start of trading.
The 24K variant of the yellow metal fell by Dh2.75 per gram, trading at Dh282.75 per gram, down from Dh285.5 per gram at the close of offers on Thursday.
Similarly, 22K, 21K, and 18K opened at lower prices of Dh261.75, Dh253.5, and Dh217.25 per gramme.
As of 9.25 a.m. UAE time, the precious metal was trading at $2,334.6 per ounce globally.
The yellow metal is falling due to stronger-than-expected US economic data, causing the US Treasury to raise interest rates while also lifting the US dollar towards most currencies.
With the US economy performing exceptionally well and inflationary pressures proving more persistent than anticipated, the Federal Reserve will likely maintain its restrictive policy stance for longer. This scenario of higher interest rates for longer could limit gold’s upside potential in the near term, assuming risk aversion remains in check,” said Diego Colman, contributing strategist at dailyFX.
Investors have been advised to take a cautious wait-and-watch approach as the commodity prices have been unpredictable due to multiple global factors.
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