Dubai: Gold slips; 24K price drops, 22K trades at Dh202.75

Gold prices fell on Wednesday morning as investors awaited the outcome of the US Federal Reserve meeting to assess its plan to combat inflation.

Spot gold fell 0.34 per cent to $1,781.35 per ounce at 9.25 am UAE time.

In the UAE, the 24K gold price also dropped to Dh215.75 per gram at the opening of the market on Wednesday as compared to Dh217.25 on Tuesday morning. While 22K, 21K and 18K were trading at Dh202.75, Dh193.25 and Dh165.75 per gram, respectively.

Jeffrey Halley, senior market analyst for the Asia Pacific at Oanda, said gold’s choppy range trading continued ahead of the Federal Open Market Committee (FOMC) with the wider $1,770 to $1,810 range continuing to contain nicely.

“Once again overnight, gold showed no other interest other than moving in an inversely correlated manner to the US dollar. With the greenback rising overnight, gold fell 0.30 per cent to $1,788, before easing another 0.35 per cent to $1,781.60 an ounce in Asia,” he said.

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Halley said the price action in Asia suggests that gold investors are concerned about a potential hawkish surprise from the Fed tonight. “And if that were the case, it is probably worth a $50 an ounce move lower tonight. Unless the Fed torpedoes the US dollar and bond market by sticking to their dovish mantra and not tapering. It is hard to see gold having the moment to recapture $1,800 this week,” he added.

-waheedabbas@khaleejtimes.com

• UAE