Analyst also shares forecast on how precious metal will perform this week
Gold jewellery prices in Dubai had a weak start to the weak, as bullion prices fell on rising interest rates and firm US dollar, and investors looked to other assets for better returns.
The price of 24-karat (24K) gold slipped from Dh147.25 per gram on Monday morning to Dh146.75 per gram in the afternoon.
UAE buyers can also find bargains when choosing other jewellery pieces, with 22K now selling at Dh137.75, Dh21K at Dh131.50 and 18K at Dh112.75 per gram.
“Gold prices weakened for the start of this week as rising interest rates and a strong bull market in global equities signals that there are better avenues for investment,” Vijay Valecha of Century Financial told Gulf News.
“Gold seems to be losing its shine as rising interest rates and a strong bull market in global equities signals that there are better avenues for investment,” added Valecha.
Spot prices are forecast to range between $1,205 and $1,220 an ounce for the day.
And for the rest of the week, prices could range in the $1,195 to $1,235 zone. In the UAE, Valecha expects the price of 24K to move between Dh145 and Dh149 per gram.
Gold prices had strengthened during Friday’s last session after sinking to a 17-month low of $1,204 an ounce, as non-farm employment data in the United States came in softer than expected and the greenback weakened.
As of 10.50am on Monday, spot gold was steady at $1,213.05 an ounce, after hitting as high as $1,217.85 in early trade, according to Reuters.
August and September are known to be positive months for gold, with historical analysis showing that prices of the precious metal during these months go up by an average of 4.1 per cent.
Just last week, demand for gold in India, one of the world’s biggest consumers of the precious metal, had already shown some uptick.
“Gold has entered into seasonally best two months of the year. Historical analysis reveals that during these months, gold prices have gained an average of about 4.1 per cent, with a probability of nearly 70 per cent,” said Valecha.