Dubai: Gold prices rise; stay above $1,800

Staff Report/Dubai
Filed on July 28, 2021


24K price rises Dh1 to Dh218.75 per gram in Dubai.

Gold prices firmed on Wednesday above the key psychological level of $1,800 on a weaker dollar, though gains were curbed by investor caution ahead of a Federal Reserve meeting that could offer clues on the US central bank's policy tapering plans.

Spot gold was up 0.26 per cent at $1,804.48 per ounce at 9.15am UAE time. The precious metal prices rose in the UAE in line with the global rates.

The Dubai Gold and Jewellery Group data showed 24K price rising by one dirham to Dh218.75 per gram on Wednesday morning as compared to Tuesday morning. Among the other variants of the precious metal, 22K rose to Dh205.5; 21K to Dh196.0; and 18K to Dh168.0 per gram.

"Gold is benefiting from some risk-hedging buying by investors ahead of tonight's FOMC (Federal Open Market Committee) meeting outcome. Overall, gold remains anchored within a broader $1,790-$1,810 range and lacks the momentum to convincingly break either side for now. That may change post-FOMC," Jeffrey Halley, a senior market analyst, Asia Pacific at Oanda, told Reuters.

The precious metal slumped 7 per cent in June after the Fed struck a hawkish tone in its last meeting. Investors will look for cues on when the central bank will begin to taper its monetary support amid fast-rising prices and any view on the looming threat from Delta variant of coronavirus.

The Fed will likely announce the first of a scheduled round of reductions to its bond purchase programme, but will leave its rate rising schedule still some ways down the road, Edward Meir, analyst with ED&F Man Capital Markets said in a note.

However, "any sell-off in gold will be more measured as the complex has discounted much of the Fed move already."

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