ALBAWABA — Gold prices continued falling on Friday as investors and traders remained cautious of looming rate hikes from United States Federal Reserve coupled with a strong dollar and easing Producer Price Index data.
On a monthly basis, the PPI advanced 0.7 percent in January after December’s drop of 0.2 percent, coming in at 6 percent on an annual basis versus the forecast 5.4 percent.
On the international market, spot gold was down 0.79 percent at $1,827.40 a troy ounce, at 6 a.m. UAE time.
The precious metal prices fell in the United Arab Emirates in line with global rates on Friday.
The Dubai Jewelry Group data showed 24K gold price opening lower at 221.25 dirhams per gram as compared to yesterday’s closing at Dh221.75 per gram.
Similarly, 22K, 21K and 18K also opened lower at Dh204.75, Dh198.25 and Dh170 per gram, respectively, closing the day before at Dh205.25, Dh198.75 and 170.25 respectively.
"Though the recent positive US economic releases and a firm U.S. dollar continue to put pressure on the safe-haven status of gold, there are chances of a mild technical bounce-back as prices dipped to multi-week lows," Hareesh V, Head of Commodity Research at Geojit Financial Services, told Live Mint.
The U.S. dollar index is in a revival mode towards 103-106, which could lead to some dips in gold prices.
"Gold purchases in international markets in the last one year was 4,000 tons of which 1,400 tons took place in the fourth quarter. There was institutional buying too. Apart from this, the jewelry demand revived in China as the Chinese government relaxed COVID-19 related restrictions and reopened its economy. China is one of the biggest consumers of gold, accounting for over 30 percent of global jewelry demand," Emkay Wealth told The Economic Times.