Gold rates in Dubai soar at the start of the week

Key takeaways: 

• The Gold rates fell nearly 2.5 per cent on Friday after data revealed US job growth revved sharply last month, and the unemployment rate struck a 2-year low.

Gold rates increased on Monday morning, but a stronger dollar and concerns that the US Federal Reserve might keep raising interest rates kept bullion below the critical $1,900-an-ounce level.

Gold rates increased in Dubai: 

Spot gold soared by 0.63 per cent at $1,877.08 for each ounce as of 9.15 am UAE time.

Gold costs opened higher in Dubai on the week’s first trading day.

The Dubai Jewellery Group data revealed 24K opening at Dh227.5 for each gram on Monday, compared to last week’s closing of Dh225.75. 

Also read: See photos of Gujarati actor Tushar Sadhu with his wife on their first anniversary

Meanwhile, 22K, 21K and 18K were selling at Dh210.75, Dh204.0 and Dh174.75 for each gram.

The yellow metal dropped nearly 2.5 per cent on Friday after data showed US job growth revved sharply last month, and the unemployment rate struck almost 53-1; in other words, a 2-year low of 3.4 per cent.

Christopher Wong, a forex strategist at OCBC, stated markets were initially looking for the first-rate cut to arrive in the third quarter of 2023. Still, anticipations for the first cut have been forced back to November-December 2023.

“Markets are now predicting the Fed to keep prime rate (about 5 per cent) on hold for longer. This could push gold’s appeal in the interim,” he said.