Dubai: 24K gold price jumps to Dh220 per gram

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Dubai - Fed’s dovish tone and softer dollar support precious metal.

By Staff Report

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Published: Thu 29 Jul 2021, 9:24 AM

Gold prices climbed to a more than one-week high on Thursday after US Federal Reserve chairman Jerome Powell struck a dovish tone while a softer dollar lent further support to the precious metal.

Spot gold rose 0.35 per cent to $1,815.51 per ounce by 9.15 am UAE time. In the UAE, 24K price increased to Dh220.0 per gram at the opening of the market on Thursday as compared to Dh218.75 on Wednesday morning. The price is up by Dh2.5 per gram from Wednesday’s close of Dh217.5.

Among the other variants of the precious metal, 22K increased to Dh206.25 per gram; 21K to Dh197.25; and 18K to Dh166.0 on Thursday morning.

”Investors are buying into the dynamic that the Federal Reserve has opened up for gold. They have talked down the risks of rate hike and tapering a little bit, and that gives gold prospects to drift higher in the short term,” Kyle Rhoda, an analyst at IG Market, told Reuters.

”The next key level of resistance will be in the range of $1,830-$1,840,” he said.

Powell said the US job market still had ”some ground to cover” before it would be time to pull back support and that it was ”ways away” from considering interest rate hikes.

”Rising monetary policy uncertainty, inflation and increasing risk of equity market volatility should favour demand for safe-haven assets,” ANZ Research said in a note.

Investors will now turn their attention to the US weekly jobless claims data due later today.

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