Dubai: After hitting a one-week high, gold’s retail prices in Dubai dropped by nearly a dirham per gram as global markets staged a rally and the US dollar strengthened.
There have also been reports of profit-taking by investors in China after returning from a week-long break.
The price for 24-carat gold in Dubai had dropped to Dh138.25 per gram on Wednesday morning and later inched further down to Dh138.
As of Thursday noon, 24K was retailing at Dh137.50, while 22K, 21K and 18K stood at Dh130.75, Dh125.50 and Dh108.50, respectively. Gold’s retail rate had dropped to Dh134.25 for 24K on October 1, its lowest in a week.
Spot gold eased 0.3 per cent to $1,142 an ounce as of 0635 GMT on Thursday, according to a Reuters report.
The precious metal had earlier earned much support from lacklustre employment data from the United States (US).
Hiring in the US slowed down in September, with the economy adding only 142,000 jobs last month, much lower than the forecast 304,000 vacancies.
The Federal Reserve announced last month that it would defer the increase in interest rates. Investors are expecting that the weak hiring figures in the US, coupled with the volatility in the financial markets and slowdown in China, will continue to deter the Fed Reserve from adjusting the rates before the end of 2015.
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