Gold prices in the UAE experienced a slight decline at the opening of the markets on Monday. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh232.75 per gram, slightly lower than the previous week’s close of Dh233.0 per gram. The prices for 22K, 21K, and 18K gold were Dh215.5, Dh208.5, and Dh178.75 per gram, respectively.
At 9.10 am UAE time, spot gold was trading at $1,925.89 per ounce. Bas Kooijman, CEO and Asset Manager of DHF Capital, highlighted that the release of the Federal Reserve’s minutes last week reinforced expectations of higher interest rates. This could potentially make gold less appealing compared to higher yield risk-free assets.
Daniel McCarthy, a strategist at dailyFX, noted that the precious metal started the week holding onto the gains it saw on Friday when the US dollar weakened. However, McCarthy pointed out that the increase in US real yields could be a cause for concern for gold bulls. Real yields are calculated by subtracting the market-priced inflation rate from the nominal yield derived from Treasury inflation-protected securities.
Overall, the slight decline in gold prices in the UAE reflects the impact of factors such as expectations of higher interest rates and changes in real yields on the precious metal’s appeal to investors.
