Dubai: Gold prices steady ahead of Fed meeting

Data showed that US business activity unexpectedly rebounded in February to its highest level in eight months

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A Staff Reporter

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Reuters file photo
Reuters file photo

Published: Wed 22 Feb 2023, 9:53 AM

Gold prices were steady in Dubai on Wednesday morning, as investors awaited minutes of the US Federal Reserve's latest policy meeting to assess prospects of further interest rate hikes.

The Dubai Jewellery Group data showed 24K remaining unchanged from its last night close to trade at Dh222.5 per gram, 22K at Dh206.0, 21K at Dh199.25 and 18K at Dh170.75 on Wednesday morning.

“Gold is leaning on the ropes, but it's not doing too bad considering how high US yields have moved — following a slew of strong economic data, which points to a higher terminal Fed rate,” said Matt Simpson, a senior market analyst at City Index.

Data on Tuesday showed US business activity unexpectedly rebounded in February to its highest level in eight months — the latest in a stream of data that have shown signs of a resilient US economy and a tight labour market.

“Traders will be more sensitive to hawkish clues in the FOMC (Federal Open Market Committee) minutes, which could weigh on gold prices,” said City Index’s Simpson.

“There's a greater chance of gold testing $1,800 before it tests $1,900 over the foreseeable future, given the prospects of markets repricing a higher terminal Fed rate,” Simpson added.

waheedabbas@khaleejtimes.com

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