Home News Middle East News

UAE: Gold prices gain as dollar weakens ahead of US jobs data

Gold prices in UAE rise as dollar weakens ahead of US jobs data
Gold prices in UAE gain as dollar weakens ahead of US jobs data release

Gold prices edged higher on Thursday morning, buoyed by a pullback in the dollar and US Treasury yields, while investors awaited the US non-farm payrolls report that could offer more cues on the Federal Reserve's rate hike plans.

Spot gold was up 0.44 per cent at $1,772.02 per ounce at 9.25 am UAE time.

In the UAE, the Dubai Gold and Jewellery Group data showed precious metal prices jumping one-and-a-half dirham per gram at the opening of the market on Thursday.

The 24K gold opened at Dh214.75 per gram on Thursday as against Wednesday's close of Dh213.25. Among the other variants of the precious metal, 22K opened at Dh201.75 per gram, 21K at Dh192.5 and 18K at Dh165.0 on Thursday.

The dollar was down 0.1 per cent against its rivals, making greenback-denominated gold less expensive for other currency holders, while benchmark US 10-year Treasury yields slipped from a more than one-week high.

Data showed the US services industry unexpectedly picked up in July as new orders grew solidly, while US factory orders also rose in June, gaining 2 per cent after advancing 1.8 per cent in May.

Focus now shifted to US jobs data which is due on Friday that could offer more clarity on Fed's aggressive tightening to fight against inflation.

Fed policymakers on Tuesday and Wednesday signalled that the central bank remains resolute in getting US rates up to a level that will more significantly curb economic activity and put a dent in the highest inflation since the 1980s.

Source: Khaleej Times

By: Syed Murtaza