Dubai: Gold prices trade higher, up half a dirham per gram

Gold prices rose on Tuesday after two sessions of losses as the dollar eased, while investors sought more clarity on the US Federal Reserve's monetary policy stance.

Spot gold was up 0.3 per cent at $2,001.09 per ounce.

In the UAE, the 24K gold price opened at Dh242.25 per gram at the opening of the markets on Tuesday, up half a dirham per gram from last night’s close of Dh241.75. Similarly, 22K, 21K and 18K opened higher at Dh224.25, Dh217.0 and Dh186.0 per gram, respectively, on Tuesday morning.

Naeem Aslam, chief investment officer, Zaye Capital, said traders are focusing on the Federal Reserve's next monetary policy move while keeping a watch on US economic statistics, which heavily impacts their choice.

“We believe the path of least resistance remains tilted upward, and traders would prefer a buy-a-dip chance. The dollar index is expected to fall more since speculators already know that one more uncommon rise is on the way, and any additional hikes would be very harmful to the US economy,” he said.

"Given the sharp moves of late and little tier-1 economic data to guide this week, we should expect gold to consolidate in the $1,980-$2,020 range," said Christopher Wong, strategist, OCBC FX.

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