Gold prices dipped this week on the back of strong GDP growth by the USA.
The country’s GDP grew at 2.1 percent in Q2, surpassing expectations of 1.8 percent growth. As a result, the price of gold eased as the dollar strengthened.
Karim Merchant, group CEO and MD, Pure Gold Group, told Arabian Business: “The price of gold is inversely proportional to the performance of the US dollar, so this dip, as the dollar strengthened, is expected.”
Domestic prices for gold also dipped, with 212 karat trading at AED161.25 today against AED162.25 for the same period last week; and 24 karat dropping to AED171.75 from AED172.75.
Merchant added: “The market is now focused on the US Federal Reserve meeting scheduled for this week. If they announce a rate cut, the dollar is expected to depreciate, which will, in turn, benefit gold.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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