Dubai Gold Prices Tumble Below Dh500 Ahead of Fed Decision
Dubai gold prices dropped on Tuesday morning, dipping below Dh500 per gram for the first time in a week. The 24-karat rate fell to Dh487.50 per gram at 9:10 am, down Dh3.50 from Monday's price of Dh491. This decline brought both the 24-karat and 22-karat varieties back to levels seen on July 23.
The 24-karat price had reached a monthly high of Dh503 on July 4 and July 5 but fell to a low of Dh481.50 on July 16 and 17 before recovering and crossing the Dh500 mark again on July 22.
According to Ahmad Assiri, Research Strategist at Pepperston, gold is consolidating within a 5% range this month as US tech comes under pressure and US Treasury yields grind higher. Higher Treasury yields can reduce demand for gold because it does not pay interest, while a stronger US dollar makes bullion more expensive for buyers using other currencies.