Dubai gold price today: Rates in UAE slip to one-week lows
In global market, the weak trend continued with spot gold edging lower to $1,934.02 per ounce. Investors remained cautious ahead of Thursday's US inflation readings. The US dollar climbed higher after weaker Chinese trade data, putting pressure on the yellow metal.
The dollar index was up 0.4% but gold's losses were capped due to easing of US benchmark 10-year Treasury yields. A hotter-than-expected CPI number on Thursday could raise the possibility of another rate hike in September. Higher rates typically tends to lift bond yields, raising the opportunity cost of holding zero-yield bullion.
Additional interest rate hikes would likely be needed in order to lower inflation to the Fed's 2% target, Fed Governor Michelle Bowman said on Monday. Data released today showed China's exports plunged by the most the beginning of the Covid pandemic, and imports contracted last month. Commodities prices retreated, with oil losing about 1% tracking a stronger dollar and weak trade data from China.
Gold investors remained on the sidelines ahead of the US inflation data. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to a five-month low on Monday. Central bank buying has been a major supporter of gold demand, despite the slower pace of buying compared to a record high purchases in 2022.
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