Dubai: Gold prices recover; 24K rises to Dh216.0 per gram

Gold prices gained on Thursday morning as the dollar weakened after the US Federal Reserve said it would end pandemic-era bond-buying in March.

Spot gold climbed 0.13 per cent to $1,781.69 per ounce at 9.15 am UAE time.

In the UAE, 24K price rose more than one dirham per gram to Dh216.0 per gram on Thursday morning as against Dh214.75 on Wednesday morning, according to data published by the Dubai Gold and Jewellery Group.

While 22K opened at Dh203.0 per gram, 21K at Dh193.5 and 18K at Dh166.0 today.

The precious metal has been remaining under pressure for quite some time as investors were waiting for clarity on the interest rates.

Gold prices got knocked down after the Fed signalled inflationary pressures will force them to finish tapering by mid-March and that next year they could deliver three rate hikes, with an additional three in 2023. The risk that the economy could fall into recession in 2023 does not seem so unreasonable.

But Edward Moya, senior market analyst at Oanda, said gold’s weakness could be near its end as the Fed will be on autopilot until the March policy meeting.

The Fed on Wednesday doubled the pace of tapering and forecasted three rate hikes in 2022 and another three increases in 2023.

Thomas Westwater, an analyst at DailyFX, said gold prices are on the rise through the Asia-Pacific session after an overnight bout of strength following the Federal Reserve’s rate decision.

-waheedabbas@khaleejtimes.com 

• Dubai