UAE: Gold prices steady after Fed leaves rates unchanged

Gold prices in the UAE were steady at the opening of the markets on Thursday.

According to the Dubai Jewellery Group data, the 24K was trading at Dh240.50 per gram at 9am, UAE time, on Thursday morning, remaining unchanged from last night’s close.

However, prices are up by Dh1 per gram when compared to Wednesday’s opening market rates.

Variants 22K, 21K and 18K opened at Dh222.75, Dh215.5 and Dh184.75 per gram, respectively, on Thursday morning.

Spot gold was stable at $1,985.95 per ounce by 9.25am, UAE time.

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The precious metal was buoyed by a weaker US dollar and Treasury yields after the Federal Reserve held interest rates steady and as investors stepped up bets that the central bank may be done with rate hikes.

The US Central Bank on Wednesday left interest rates unchanged as policymakers struggled to determine whether financial conditions may be sufficiently tight to control inflation.

Vijay Valecha, chief investment officer of Century Financial, said from a technical perspective, gold confirmed breaking the bullish channel's support line to begin a bearish correction for the rise that began from $1810.58, on its way to test $1,960 as the first negative station; a break at this level will push the price to achieve additional bearish correction, with the next target reaching $1,930.

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