On Monday, June 14, 2021, Dubai gold rates plummeted down to their least amount in over 7 days. This is because of the increasing rates of the US Dollar working against this yellow metal. Generally, all precious metals faced a drop in their prices, hitting their lowest level in one and a half weeks based on the strength of dollars.
What Exactly Are The New Gold Rates?
As of 9:20 am UAE time, spot gold went down by 0.52 percent at $1,864.04 per ounce. This is the minimum it has been since the fourth of June. The price of gold in the UAE dipped as much as Dh 1.5 per gram on Monday at the commencement of trade, along with global rates.
As per data provided by The Dubai Gold and Jewelry Group, on Monday morning, the price of 24K gold went from Dh 227.5 to Dh 226.0 per gram. The price of 22K gold went from Dh213.75 to Dh212.25, and that of 21K dropped from Dh204.0 to Dh202.5. For 18K the slump in rates was from Dh204.0 to Dh202.5. All forms of this precious metal, therefore, faced a decline on Monday, June 14, 2021.
What Do Experts Have To Say About It?
Since the surge in inflation in the USA that happened lately, investors in commodity had been looking for signs from the US Federal Reserve meeting this week. Ipek Ozkardeskaya, a senior analyst at Swissquote, said that with the US returns diminishing, there would be a spike in desire for non-interest-rate-bearing gold. He also added that reducing expectations regarding inflation will cap “the upside appetite, this time”.
Stephen Innes, managing partner at SPI Asset Management said that the economy is beginning to expect a moderate turn towards deliberating taper. Therefore, the market is pushing investors into more of either profit-taking or reducing gold as well as currency positions. The US inflation has a great role to play in all of this.
All of this has ultimately led to the increasing strength of the dollar rate. Stephen Innes feels that mainly, the inflation pressures are at a condition that is unlikely to last for a long time. Hence, currently, there is a slight amount of unpredictability attached with how CPI is going to continue playing out. Even experts acknowledge this uncertainty and are waiting patiently to see how it turns out.