Gold prices rose on Wednesday as the US Treasury yields and the dollar eased, with investor focus shifting to key inflation data due this week that could influence the Federal Reserve's decision to taper its stimulus at a faster pace.
Spot gold was up 0.26 per cent at $1,780.3 per ounce at 9.30 am UAE time.
The precious metal prices rose in the UAE in line with the global rates on Wednesday morning. In the UAE, 24K prices rose more than one dirham on Wednesday to trade at Dh216.75 per gram as against Dh215.25 on Tuesday morning. Among the other variants of the precious metal, 22K opened at Dh203.5 per gram, 21K at Dh194.25 and 18K at Dh166.5.
Ipek Ozkardeskaya, a senior analyst at Swissquote, said the market should continue seeing a solid resistance into the $1,800 mark.
Jeffrey Halley, a senior market analyst at Oanda, said in the bigger picture, gold looks set to trade in a rough $1,770 to $1,800 an ounce range this week, unable to sustain momentum above or below those levels.
“Support lies at $1,770 and $1,760. Gold could still stage a modest recovery this week, but if the US yield curve continues steepening, that may never eventuate, especially if US CPI data on Friday is likely to print around 7.0 per cent. Gold remains a sell on rallies to $1,810. The balance of risks still favours a move lower towards $1,720 an ounce,” added Halley.
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Spot gold was trading at $1,785.82 per ounce at 9.20am UAE time
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