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Gold prices dropped on Monday morning as investors assessed the risk of aggressive rate hikes expected this week by major central banks, particularly the US Federal Reserve, to manage inflation.
Spot gold was down 0.64 percent at $1,668 per ounce as of 9:10 am UAE time.
Gold prices in the UAE declined by one dirham per gram at the start of trading on Monday.
According to Dubai Gold and Jewellery Group data, 24K was trading down one dirham at Dh202.0 per gram. On the other hand, 22K, 21K, and 18K also opened lower at Dh189.75, Dh181.0, and Dh155.25 per gram, respectively.
Analysts predict that the Fed will raise interest rates by 75 bps at its next meeting on Wednesday.
Following stronger-than-expected inflation figures on Tuesday, the Federal Reserve will raise the Fed Funds target rate by 75bp to 3.25-3.50 percent at its meeting on Wednesday.
Last week, gold fell more than 3% in a week, reaching a 2-year low. Under the pressure of a stronger dollar and rising US Treasury bond yields, the yellow metal dropped to its lowest levels since Covid, driving the price below a critical support level of $1,700. BKM/ Expat Media
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