Dubai Gold Prices Drop Below Dh500 per Gram as Market Anticipates Nonfarm Payrolls Report
Gold prices in Dubai fell on Friday morning, with 22K gold dropping below Dh500 per gram. The price of 24K gold decreased to Dh539.25 per gram from Dh542 at the close of markets on Thursday.
The other metals also followed the market trend, with 22K trading at Dh499.25, 21K at Dh478.75, 18K at Dh410.25, and 14K at Dh320 per gram.
Joseph Dahrieh, managing director at Tickmill, stated that investors are focused on the US nonfarm payrolls data, which could provide clues on September rate-hike bets. He noted that softer August ADP payrolls helped ease September Fed-hike odds to around 62% from about 68%, underpinning gold prices.
Dahrieh also mentioned that Friday's nonfarm payrolls report is the next major driver, and a weak reading could lead to a cut in hike bets and further extend gold's bounce. Stronger jobs data may lift yields again and cap gains.