ALBAWABA — Gold prices dropped slightly on Thursday, as traders mull over the United States Federal Reserve's hawkish position on rate hikes.
On the international market, spot gold was down 0.27% at $1,937.30 a troy ounce, at 2:40pm UAE time.
The precious metal prices rose slightly in the United Arab Emirates against global rates on Thursday.
The Dubai Jewelry Group data showed 24K gold price opening at Dh234.5 per gram as compared to yesterday’s opening at Dh234 per gram.
Similarly, 22K, 21K and 18K also opened higher at Dh217.25, Dh210.25 and Dh180.25 per gram, respectively.
Gold traders are pricing in a 96 percent chance that the U.S. Fed will raise rates by 25 bps at its policy meeting next week.
“As the expectation of inflation continuing to come down, there will be lesser need for Fed interest rate hikes and the market is really focused on the idea of an ending to the Fed interest rate cycle,” David Meger, director of metals trading at High Ridge Futures, told Reuters.
