Dubai: Retail prices of the precious metal in Dubai fell for a second consecutive day on Thursday morning as the bullion failed to maintain its Tuesday’s gains on the back of a stronger US dollar.
The yellow metal fell 0.5 per cent on Wednesday and eased 0.1 per cent to $1,132.45 an ounce by 0637 GMT, according to Reuters.
In Dubai, retail prices dropped further to Dh136.75 per gram for 24-carat gold, down by Dh1.25 compared to Tuesday’s rate.
The price for 22K dropped to Dh130, while 21K eased down to Dh124.75 and 18K to Dh107.75. Ten tola gold bar stood at Dh15,665, down from Dh15,800 on Tuesday.
Analysts are expecting the bullion to incur more losses in the coming months, with the global price forecast to hit $1,000 an ounce by December this year. Spot gold is likely to drop further in the coming year, hitting as low as $800 an ounce by December 2016, according to ABN Amro’s forecast.
Aside from the US dollar, expectations that the United States Federal Reserve will increase interest rates this year are also affecting gold prices. With the payrolls data in the US out on Wednesday, there is a likelihood that the anticipated interest rate increase will indeed happen before the end of the year.