UAE: Gold prices drop as dollar gains in early trade

UAE: Gold prices drop as dollar gains in early trade

The rise in risk-free interest rates, such as US Treasury bonds, poses a significant challenge to interest-free assets like gold, says analyst

Published: Fri 25 Aug 2023, 9:58 AM Last updated: Fri 25 Aug 2023, 10:00 AM

Gold prices fell Dh1 per gram in the UAE on Friday morning as the US dollar jumped in early trade.

The 24K variant of the precious metal was trading at Dh231.75 per gram at the opening of the markets on Friday, down from Dh232.75 on Thursday morning.

Rates for 22K, 21K and 18K dipped to Dh214.5, Dh207.75 and Dh178 per gram, respectively, at 9am, local time.

Spot gold eased 0.11 per cent to $1,913.77 per ounce by 9.30am, UAE time.

[Editor's Note: For real-time gold rates, click the widget below or visit KT's dedicated Trading News page here.]

The yellow metal slipped from a two-and-a-half-week high on Friday. It could be the first week of gains this month.

Investors will focus on Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde's speeches expected later in the day at the annual economic symposium in Jackson Hole, Wyoming, for further clues about interest rates.

Rania Gule, market analyst at XS.com, said gold has been rising this week as yields recede. However,