Gold price in UAE tumbled on Thursday as the US economy turned out more resilient in the second quarter than expected. The Fed’s less-hawkish guidance put pressure on the US dollar, resulting in a weakening of dollar-denominated commodities. Gold faced additional challenges due to the uptick in US Treasury yields, breaking through a recent level of short-term support at $1,960 per ounce.
In the UAE, the rate for 24K gold fell from Dh239.25 per gram to Dh235.5 per gram on Thursday morning. Similarly, the price of one gram of 22K gold, the standard for gold jewelry, also dropped from Dh221.50 in the morning to Dh218 in the evening.
Investors are concerned about the US Dollar Index, with many believing that the recent interest rate hike in July may be the last for now. Consequently, expectations of steady rates ahead have led to a decline in fears of a US recession, further affecting US Dollar bears. Analysts have adjusted their gold forecasts for the year, with the median predictions at $1,950 an ounce in Q3, $1,995 in Q4, $1,944.5 for the full year, and $1,988 in 2024, suggesting a cautious outlook for the gold’s future.