Dubai gold prices: Rates dip in UAE today but set for huge monthly gain

economictimes.indiatimes.com:

Gold prices in UAE dipped today, tracking a similar trend in global markets but the yellow metal is set to close the month on a strong note. According to Dubai Jewellery Group, the 24K was today trading at 236.75 dirhams per gram, down from last week's close of 237.25 dirhams per gram last week. 22K and 18 K gold were trading at 219.25 dirhams per gram and 181.75 dirhams per gram respectively.

However, gold is set to close the month on a strong note, up around 2%, the biggest monthly gain in four. In global markets, gold rates were subdued at $1,955 per ounce but were set for biggest monthly gain in nearly four. For the month, bullion prices were nearly 2% higher on expectations US interest rates could be nearing their peak.

The dollar index was also on track for a second straight monthly decline. Higher interest rate puts downward pressure on the prices of non-interest-paying bullion. Key data and events to watch out for this week would be the US July Jobs report that would come out on Friday and BoE monetary policy on Thursday.

Data released last week showed a key indicator of US inflation cooled in June to the lowest annual rate in over two years, though it remains above the central bank's target. The Federal Reserve's preferred gauge of inflation, the personal consumption expenditures (PCE) price index, rose 3.0 per cent last month from June 2022, down from a 3.8 per cent jump in May. Some analysts say that though the market is pricing in all the good news on inflation, any signs of strength in US Jobs market might raise the odds of a September hike from US Fed.