Gold rate Dubai today: Prices in UAE drop to near one-week low

Gold in UAE cooled a bit today, with prices of 24K dropping to near one-week low of 234.50 dirhams per gram, as compared to previous week's close of 235.25 dirhams per gram, according to Dubai Jewellery Group. 22K gold today traded at 217.25 dirhams per gram, 21K at 210.25 dirhams per gram and 18K at 180.25 dirhams per gram. The yellow metal had dipped nearly 1% in UAE last week, tracking a drop in global rates.

In global markets, gold dipped today, weighed down by a stronger US dollar. Spot gold was down 0.3% at $1,936.80 per ounce but was off the three-week lows hit on Friday. A cool-off in US bond index helped bullion to recover from lows.

The US benchmark 10-year Treasury yields is off November highs after mixed jobs data on Friday. The US economy added fewer jobs than expected in July but unemployment rate fell and wage growth was stronger. When rates rise, non-yielding gold typically loses some sheen.


The dollar index today 0.32% to 102.35 at the start of the week, as traders braced for US inflation data, scheduled to be announced on Thursday.

According to forecasts, US CPI is expected to edge higher to 3.3% y/y and core CPI to remain steady at 4.8% in July, which might prove to be a headwind for gold prices, say analysts.

Last week, COMEX gold prices saw the first weekly decline in five amid a spike in US bond yields. Better-than-expected economic data at the start of week could potentially keep pressure on the Federal Reserve to maintain rate hike, said analysts. A deluge of treasury sales to finance larger deficits in US coupled with Fitch ratings downgrade of US sovereign debt added to the upside pressure on the yields.

On the other hand, in-line or better-than-expected inflation numbers this week could take off pressure on bond yields and thus give gold and silver a bit of a lift, say analysts.