Dubai Gold Prices continue to drop

Dubai— Gold process have dropped down slightly this Thursday and investors continue to wait for the meeting of the Federal Reserve in the United States in order to figure out ways to solve the issue of the monetary policy.

The Federal Open Market Committee (FOMC) is yet to meet for two days, starting September 20th, and will make an announcement regarding the Fed’s decision.

On Thursday, 24-karat (24K) gold was retailing at Dh160 per gram in Dubai, dropping by 50 fils from Wednesday’s closing rate. Prices for 22K, 21K and 18K have also dropped to Dh150.25, Dh143.50 and Dh123 per gram, respectively.

Experts took their time to dig deep into the matter and discovered that prices will be trending down over the next few days as the markets are buzzing simply due to the anticipated FOMC meeting.

Karim Merchant, group CEO and managing director of Pure Gold Jewellers, told Gulf News that “Markets are waiting as the FOMC meeting nears, to decide on interest rate increase. Gold is expected to become more volatile closer to the meeting date,” Karim Merchant, group CEO and managing director of Pure Gold Jewelers, told Gulf News.

Ole Hansen, head of commodity strategy at Saxo Bank reported that she expects gold prices to fall between $1,334 and $1,328 an ounce. “A break, however, would counteract the recent strength and could send gold back down to test the key support at $1,300,” Hanses added.

Hanses expressed his thoughts on the upcoming FOMC meeting,saying that there’s a high possibility that the rates will increase. “Despite recent weakness in economic data, the FOMC may still opt to raise rates in order not to suffer too much of a credibility issue following recent hawkish statements.”

Leave a Reply

Your email address will not be published. Required fields are marked *