Happy Dhanteras: Diwali lights up Dubai gold prices

Gold prices were mostly steady on Tuesday, pressured by a firmer dollar. 
Spot gold was little changed at $1,293.24 an ounce at 0344 GMT, while US gold futures for December delivery were down 0.6 percent at $1,295.2 per ounce.
Dubai gold prices are currently Dh156.50 for 24-karat and 22-karat can be bought for Dh147.
"A lot of the price drivers that are clouding gold prices are really geopolitical tensions rather than fundamentals," said OCBC analyst Barnabas Gan.
 The dollar edged up against its peers on Tuesday, supported by a rise in Treasury yields following a report that US President Donald Trump was favouring a policy hawk as the next head of the Federal Reserve.
Trump will meet with Fed Chair Janet Yellen on Thursday as part of his search for a new candidate for her position, a source familiar with the planned meeting said.
The Fed will probably need to raise interest rates in December and then three or four times "over the course of next year", assuming the US unemployment rate continues to fall and inflation rises, Boston Fed President Eric Rosengren said.
Higher US interest rates tend to boost the dollar and push up bond yields, putting pressure on greenback-denominated gold.
Spot gold may drop to $1,281 per ounce, as it failed to break resistance at $1,305, said Reuters technicals analyst Wang Tao.
In other precious metals, silver and platinum were both down 0.1 per cent at $17.17 and $927.50 an ounce respectively.
Palladium was 0.4-per cent higher at $976.50 an ounce, after hitting its best since February 2001 in the previous session.
UAE retailers are hoping that gold demand picks up with the Indian festival season, with Diwali set to be celebrated on Thursday. Dhanteras, which is today (Tuesday, October 17), is considered an auspicious day to purchase gold and silver. 
 
 
 
 
 

• Gold and Forex