Gold prices in the UAE experienced a slight decline in the morning market opening. Data from the Dubai Jewellery Group indicated that 24K gold was trading at Dh231.25 per gram, down from Dh231.75 per gram at the previous night’s close. Meanwhile, 22K gold opened at Dh214.0 per gram, 21K at Dh207.25 per gram, and 18K at Dh177.75 per gram at 9 am local time.
At 9:35 am UAE time, spot gold remained steady at $1,910.23 per ounce.
The recent drop in gold prices is attributed to strong economic data in August, which has put downward pressure on the precious metal. Despite previous weaknesses in the labor market, recent reports have shown a rebound with robust data. As long as economic data continues to provide mixed expectations, market participants may anticipate further interest rate hikes.
Investors are closely monitoring the upcoming release of the US Consumer Price Index (CPI) data for August, which is of significant importance ahead of the Federal Reserve’s policy meeting in September. This data has the potential to offer insights into the inflation situation in the United States, which could significantly impact investor expectations concerning the US dollar and, consequently, gold trading.