UAE: Gold prices remain steady in Dubai on first trading day of the week
UAE: Gold prices remain steady in Dubai on first trading day of the week
Gold prices remained unchanged in the UAE at the opening of the markets on Monday.
According to Dubai Jewellery Group data, the 24K variant of the precious metal was trading at Dh232.5 per gram on Monday morning. While prices of 22K, 21K and 18K were trading at Dh215.25, Dh208.5 and Dh178.75 per gram, respectively.
Spot gold was trading at $1,919.24 per ounce at 9.30am UAE time as investors were focused on the US Federal Reserve decision on interest rate hikes.
Diego Colman, a contributing strategist at dailyFX, said market dynamics will not be favourable for gold in the near term.
“For instance, the Fed’s hawkish guidance, which implies 50 basis points of additional tightening through year’s end and higher-for-longer rates, is likely to act as a drag on precious metals moving into the summer. With nominal and real yields biased upwards, gold will remain in a vulnerable position, meaning that further losses could be brewing,” he said.
Naeem Aslam, chief investment officer, Zaye Capital Markets said the shining metal seems to remain out of sight as the Fed continues its jawboning. Jerome Powell has a difficult task on hand, which is to tame inflation, and he has made it clear that he is willing to take any chance to make sure that inflation comes close to its target level.
“This means that any weakness in the dollar index continues to serve as an opportunity for dollar bulls, which has an adverse influence on the gold price,” he said.
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source: khaleejtimes
