Most other GCC stock markets also recorded positive performances thanks to strong performances from listed companies that helped build investors’ confidence
Gold prices fell from a more than two-month high on Wednesday morning, hit by the gains in the US dollar.
Spot gold fell 0.2 per cent to $1,827.05 per ounce by 9.10 am UAE time.
In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh221.25 per gram at the opening of the market. While 22K, 21K and 18K were trading at Dh208.0, Dh198.25 and Dh170.0 per gram, respectively.
Jeffrey Halley, senior market analyst for the Asia Pacific at Oanda, said gold’s story still looks inversely correlated to US yield and the US dollar. “If the (US) inflation story held water, then surely US yields would be higher. Nevertheless, gold’s price action remains constructive, and it has managed to hold onto its gains just below the major zone of longer-term resistance at $1,832 to $1,835 an ounce,” said Halley.
The dollar index edged up 0.1 per cent on Wednesday, raising gold's cost to buyers holding other currencies.
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“If gold can break and hold above $1,835 an ounce on a daily closing basis, it will trigger an inverse head-and-shoulders pattern that would target a return to $2,000 an ounce. Support is at $1,800 and $1,785 an ounce, although I suspect that a fall through $1,810 will be enough to trigger nervous longs to exit,” he added.
Daniel McCarthy, strategist at Daily FX, said a potentially robust outlook for the US inflation may not have the levity for the yellow metal.
“The past year has seen inflation run rampant, and yet gold is little changed. The inflationary impact for gold might be felt through the impacts on the US dollar and yields,” said McCarthy.
-waheedabbas@khaleejtimes.com
Most other GCC stock markets also recorded positive performances thanks to strong performances from listed companies that helped build investors’ confidence
Benchmark S&P 500 index rises 1.8 per cent
Spot gold was down 0.22 per cent at at 9.10 am
Spot gold was trading at $1,785.82 per ounce at 9.20am UAE time
Dubai’s main share index closed one per cent higher, with Shariah-compliant lender Dubai Islamic Bank rising 1.7 per cent and Dubai Investments up 5.6 per cent
The currency depreciated by 39 paise to close at 79.63 against the US currency on Monday
Spot gold was trading at $1,771.62 per ounce, down by 0.2 per cent at 9.15am
Analysts and forex experts caution that the political instability will continue to weigh on the rupee's future and may slow the recovery pace in coming days