UAE: Gold prices steady in early trade ahead of Fed meeting

Gold prices were steady at the opening of the markets in the UAE on Tuesday as the yellow metal struggles for direction ahead of the US Federal Reserve meeting.

According to Dubai Jewellery Group data, the 24K opened unchanged at Dh237.50 per gram on Tuesday morning when compared to last night’s closing rate. However, it is slightly up from Monday morning’s opening price of Dh237.25 per gram. Among the other variants of the yellow metal, 22K was trading at Dh219.75, 21K at Dh212.75 and 18K at Dh182.50 per gram at 9am, UAE time, on Tuesday.

Spot gold rose 0.33 per cent to $1,961.22 per ounce by 9.20am, UAE time.

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Manish Jaradi, strategist at dailyFX, said the yellow metal rally appears to be losing steam ahead of the Fed, the European Central Bank, and the Bank of Japan policy meetings.

“The Federal Reserve is widely expected to hike interest rates one last time by 25 basis points on Wednesday, but the accompanying statement will be closely watched. A hawkish hike could provide support to the US dollar globally and weigh on gold. A more data-dependent/ ‘wait-and-watch’ could put dollar and gold back within their recent ranges, whereas a dovish hike could exert downward pressure on he dollar,” said Jaradi.

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