Dubai gold price edge lower, will it drop further?

Gold prices eased on Monday, following a sharp fall in the previous session, as a strong US jobs report tempered expectations of an aggressive interest rate cut by the Federal Reserve later this month.

Dubai gold price touched Dh169.25 and shoppers can buy 22k at Dh159.

Spot gold was down 0.2 per cent at $1,396.80 per ounce as of 0118 GMT. Gold fell more than 1 per cent on Friday and also marked its first weekly decline in seven weeks. 

US gold futures were down 0.1 per cent at $1,399.40 an ounce. Nonfarm payrolls increased by 224,000 jobs last month, the most in five months, the US Labor Department reported on Friday. 

Expectations for a Fed rate cut narrowed with the market now pricing a 27 basis points easing this month, from 33 basis points prior to payrolls.

The dollar index against basket of major currencies was relatively unchanged on Monday after hitting 97.443 on Friday, its highest level since June 19, as US Treasury yields rose across the board.