UAE: Gold prices rise ahead of Fed rate hike decision

Gold prices were slightly higher on Wednesday morning, as investors refrained from taking big bets ahead of the US Federal Reserve's interest rate-hike decision due later in the day.

Spot gold was almost flat at $1,926.51 per ounce at 9.50 am.

In the UAE, the 24K gold price rose to Dh233.25 per gram on Wednesday morning as compared to last night’s close of Dh232.5.

Among the other variants of the yellow metal, 22K opened at Dh215.25 per gram, 21K at Dh208.25 and 18K at Dh178.5.

Edward Moya, a senior market analyst at Oanda, said gold prices are rising after another round of economic data showed the labour market is cooling and the outlook for the economy remains weak.

“Fed rate hike bets continue to get slashed as Wall Street grows confident that this wave of economic weakness will do the trick to get inflation below four per cent. Bad economic news is once again good news for gold as it will continue to cement bets that a Fed pivot could happen by the end of the year,” he said.

waheedabbas@khaleejtimes.com

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