UAE: Gold prices edge up in Dubai in early trade

Gold prices edged up in Dubai and globally on Monday morning as the US debt ceiling stalemate and concerns of an economic slowdown steered some traders towards the safe-haven metal.

Spot gold was up 0.18 per cent at $2,015 per ounce by 9.15 am UAE time.

In the UAE, the 24K gold price rose half a dirham to Dh244.0 per gram on Monday morning. While 22K, 21K and 18K were trading at Dh226.0, Dh218.75 and Dh187.5 per gram, respectively.

US President Joe Biden said he expects to meet with congressional leaders on Tuesday for talks on a plan to raise the nation's debt limit and avoid a catastrophic default.

Bullion tends to gain during times of economic or financial uncertainty, but higher interest rates dim non-yielding gold's appeal.

“Gold held onto recent gains, with the precious metal trading just below its record high as the market assesses the Fed's next move,” ANZ said in a note.

Recent downside surprises in US economic data have lifted the chances of a recession over the next 12 months, with safe-haven flows providing somewhat of a cushion for gold, said Yeap Jun Rong, market analyst at IG.

“Near-term, (gold) prices remain locked in a rising channel pattern since late March this year, while the key psychological $2,000 level will remain a key support to defend,” IG's Yeap said.

-waheedabbas@khaleejtimes.com

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