Dubai: 24K gold price drops below Dh217 per gram

Gold prices were flat on Tuesday, as cautious investors assessed the extent to which the Omicron coronavirus variant could hurt the global economy.

Spot gold was trading at $1,788.19 per ounce at 9.10 am UAE time, up by 0.05 per cent.

In the UAE, prices fell flight slightly as 24K opened at Dh216.75 per gram on Tuesday as compared to Dh217.25 on Monday morning. Among the other variants of the precious metal, 22K was trading at Dh203.5 per gram, 21K at Dh194.25 and 18K at Dh166.5.

Jeffrey Halley, a senior market analyst for Asia-Pacific at Oanda, said the yellow metal’s price action continues to underwhelm, as it finished the overnight session down 0.46 per cent at $1,785 an ounce.

“There are zero signs of any safe-haven bids emerging to shelter from virus volatility, and it is falling despite both US yields and the US dollar also falling. Gold will have resistance at $1,800 and $1,815 to start the week, while yesterday’s spike to $1,770 an ounce, will provide initial support. In between, gold may find some friends around $1,780. Failure of $1,770 signals a retest of $1,760 and $1,740 an ounce,” said Halley.

"Friends are what gold needs to find quickly though, and I do not rule out a move lower to $1,720 this week, especially if the Non-Farms puts the Fed taper back in the spotlight and we have a lull in virus headlines,” he added.

waheedabbas@khaleejtimes.com

• Dubai