UAE: Gold prices steady in early trade

Spot gold was up 0.02 per cent at $1,791.55 per ounce as of 9.25am UAE time

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A Staff Reporter

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Photo: AP
Photo: AP

Published: Mon 19 Dec 2022, 9:42 AM

Gold prices were steady on Monday morning as a tepid dollar made bullion less expensive for overseas buyers, although the prospects of further interest rate hikes by the US Federal Reserve next year kept gains in check.

Spot gold was up 0.02 per cent at $1,791.55 per ounce as of 9.25am UAE time.

While gold prices in the UAE remained unchanged at the opening of the markets on Monday.

The Dubai Gold and Jewellery Group data showed 24K opening at Dh217.25 per gram, 22K at Dh201.0, 21K at Dh194.75 and 18K at Dh166.75.

Bullion registered its biggest weekly decline since mid-November on Friday after Federal Reserve chairman Jerome Powell said the US central bank would deliver more hikes next year, despite growing recession worries.

Gold prices attempted to recoup losses, considering that despite the hawkish takeaway from the Fed, upside reaction in the dollar and yields still seem more measured, said Yeap Jun Rong, strategist, IG Market.

While gold is perceived as a safe-haven asset, there are instances where prices seem detached from the safe-haven status when factors such as Fed policies come into play, Yeap said.

"Further hawkish pushback from Fed officials may pose a struggle for gold."

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