Dubai: Gold continued to head south this weekend, with the retail rates in Dubai dropping by a little over Dh14 per gram from their peak level last month.
As of 12.10pm on Sunday, 24-carat gold was trading at Dh127.25, down Dh14.25 from the highest recorded price in October. Selling rates for 22K, 21K and 18K were pegged at Dh 120.50, Dh115.25 and Dh99 per gram, respectively.
With the United States Federal Reserve expected to meet in December and rule in favour of the first interest rate increase since 2006, the precious metal is forecast to make further declines this week.
“During this week, we will get a clarification on a possible rate hike. This is the key factor for the gold price. Currently, the market expects the first increase in interest rates since a long time,” Rolf Schneebeli, CEO of Gold Services AG, told Gulf News.
He said any statement that will soon be issued by the Federal Reserve will have an impact on the bullion. “We will need to see the wording of the statement to see how quickly and how fast the future rises will be.”
“The drop below the important level of $1,100 was caused by expectation of an increase. If this is not happening, the gold will go up quite a bit. If the wording of the decision will hint no further increases rather soon, there could be another drop.”
Speculations of a rate increase, coupled with a stronger US dollar, have caused the gold price to fall several times recently. Last Friday, spot gold hit its lowest level since nearly six years at $1,052.46 an ounce.
Gold Rate: To keep up to date with gold prices, go to our gold rate page.
Currency Rate: To keep up to date with latest exchange rates, go to our currencies page.
