UAE: Gold prices inch lower in Dubai

Gold prices inched lower on Tuesday, as a firmer dollar and expectations of more rate hikes from the US Federal Reserve dented the non-yielding bullion's appeal.

Spot gold was down 0.1 per cent at $1,784.98 per ounce.

In the UAE, the 24K gold price fell slightly to Dh216.75 per gram at the opening of the market as compared to last night’s close of Dh217.0 per gram. 22K, 21K and 18K opened at Dh200.75, Dh194.25 and Dh166.5 per gram, respectively.

Fed Chair Jerome Powell said last week the central bank will deliver more interest rate hikes next year to curb inflation. Other major central banks have also highlighted the same.

Naeem Aslam, chief market analyst at AVA Trade, said gold prices are mostly consolidating now as traders are unsure about the future direction of the dollar index.

“There is no doubt that the strength in the dollar index triggered some sell-off in the precious metal, but it seems that traders still want to support the price of the precious metal as it continues to trade near the important resistance level of 1,800. For the gold prices to move higher, what we need to see is less of a hawkish monetary policy stance from central banks. But listening to the commentaries of the Fed and the ECB, it is reasonable to say that both central banks do not want to give any false hope of a dovish monetary policy,” he said.

Aslam added that central banks’ excessive hawkish monetary policy stance is also making traders nervous.

“In terms of the price level, it is more about the resistance of 1,800. The momentum the price breaks this level and stays above this price point, the odds are likely to become stronger for bulls taking further control of the price,” he concluded.

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