Gold prices saw a marginal decline on Monday following their greatest decline in 3.5 years in the previous session on stronger-than-expected U.S. jobs data. Investors now await the Federal Reserve policy meeting this week for further insights into the direction of interest rates.
In the UAE, gold prices remained stable with 24-carat gold remaining at AED277.75 per gram, while 22-carat gold recorded AED257.25. Twenty-one-carat gold held steady at AED249.00, while 18-carat gold saw a slight AED0.25 increase to AED213.50.
Globally, spot gold saw a 0.01 percent decline to $2,293.64 per ounce, as of 5:13 GMT. Meanwhile, U.S. gold futures saw a 0.62 percent decline to $2,310.55.
In addition, the dollar hit over a one-week high, rising 0.40 percent on Monday, while benchmark U.S. 10-year Treasury yields reached their highest since June 3.
China holds off gold buying
Gold prices saw a 3.5 percent decline on Friday, the largest decline since November 2020 after the release of the stronger U.S. jobs report and data from China revealing that it has held off buying gold in May after 18 straight months of buying.
The U.S. jobs report impacted trader sentiment on the next rate cut. They are now pricing in a 50 percent chance of an interest rate cut in September, down from 70 percent on Thursday.
Markets don’t expect a change during the Fed’s policy meeting this week. However, investor attention now turns to comments from Fed chair Jerome Powell, changes to economic projections from the policymakers, and U.S. inflation data due on Wednesday.
Read: After gains in May, gold prices could rise further in June
Other precious metals
In light of the decline in gold prices, the precious metals market saw an upward trend. Spot silver rose 0.83 percent to $29.42 per ounce, platinum saw a 0.95 percent increase to $972.90 while palladium gained 1.24 percent to $923.32.
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