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Gold Prices Dip in UAE Markets on Weak US Jobs Data

According to the Dubai Jewellery Group, 24K gold opened at Dh240.25 per gramme, a reduction from the previous week's closing price of Dh241.25 per gramme.

On the first trading day of the week, gold prices in the UAE saw a one-dirham drop per gram. 

Data from the Dubai Jewellery Group revealed that 24K gold opened at Dh240.25 per gram, a decrease from the previous week’s closing price of Dh241.25 per gram. 

Similarly, other gold variants also experienced a decrease in their opening prices.

2. Variants and Opening Prices:

  • 22K gold started at Dh222.5 per gram.
  • 21K gold commenced at Dh215.5 per gram.
  • 18K gold began at Dh184.75 per gram.

These prices were reported at 9 am local time.

3. Global Gold Price Trends:

Globally, the spot gold price decreased by 0.26%, reaching $1,983.45 per ounce by 9.15 am UAE time. 

The stability in gold prices is attributed to weaker-than-expected US jobs data, which has raised hopes that the Federal Reserve will not raise interest rates further. 

This, in turn, has led to a decline in the US dollar and bond yields.

Market Analyst’s Perspective:

Warren Venketas, an analyst at dailyFX, explained that the drop in gold prices is a response to the weak US jobs report. 

This report indicated a higher unemployment rate and lower wage growth. Although a single report doesn’t establish a trend, it does suggest the possibility of a weakening job market. 

The Federal Reserve may welcome this data, as it occurs in an environment where concerns of recession and stagflation have been heightened due to tight monetary policies. 

The reduced opportunity cost of holding gold has increased its attractiveness to investors.

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