UAE: Gold prices drop one dirham per gram in Dubai

Gold prices fell on Thursday morning after the release of the minutes of the Federal Reserve meeting in March, as the metal's appeal as a safe haven and inflation hedge offset an expected 50 basis point rate hike by the US central bank.

Spot gold was trading at $1,921.29 per ounce at 9.30 am UAE time, down by 0.14 per cent.

In the UAE, gold prices fell by one dirham at the opening of the market on Thursday.

The Dubai Gold and Jewellery Group data showed 24K trading at Dh232.75 per gram as compared to Dh233.75 at the close of the markets on Wednesday.

Among the other variants of the precious metal, 22K opened at Dh218.5 per gram, 21K at Dh208.5 and 18K at Dh178.75.

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Jeffrey Halley, senior market analyst at Oanda, said gold continued its sideways trading overnight, with the US dollar and US yields barely moving.

"That meant another sideways day for gold once again. Further US dollar strength today has pushed gold lower in Asia. The risks are still skewed to the downside for gold, especially if US yields and the dollar keep climbing," he said.

"You'll see gold trade a little lower between now and the close today, but there was really no big surprise in those (Fed) minutes," said RJO Futures senior market strategist Bob Haberkorn, adding that the downside to gold was limited.

"The markets were expecting that half a point hike," he told Reuters.

Fed officials noted that one or more 50 bps increases in the target range could be appropriate at future meetings, the next one being in May, particularly if inflation pressures remained elevated or intensified, according to the March 15-16 policy meeting minutes.

-waheedabbas@khaleejtimes.com

• Dubai