Gold prices edge higher in early trade

Spot gold was up 0.53 per cent at $1,659.48 per ounce, as of 9.30am UAE time



by

A Staff Reporter

Published: Tue 18 Oct 2022, 9:38 AM

Last updated: Tue 18 Oct 2022, 9:50 AM

Gold prices edged higher on Tuesday, as a softer US dollar offset risks from looming aggressive interest hikes by the Federal Reserve.

Spot gold was up 0.53 per cent at $1,659.48 per ounce, as of 9.30am UAE time.

In the UAE, 24K was trading at Dh201.0 per gram at the opening of the markets on Tuesday. Among the other variants of the precious metal, 22K opened at Dh188.75, 21K at Dh180.25 and 18K at Dh154.5 per gram.

Vijay Valecha, chief investment officer, Century Financial, said the $1,625-$1,630 level is acting as a support zone, while the $1,675-$1,685 as a resistance zone.

Christopher Vecchio, senior strategist, DailyFX, said historically, gold prices have a relationship with volatility, unlike other asset classes.

“While other asset classes like bonds and stocks don’t like increased volatility – signalling greater uncertainty around cash flows, dividends, coupon payments, etc., gold tends to benefit during periods of higher volatility. Gold volatility has started to decline, even though US yields and the US dollar remain elevated, creating a meaningful headwind for gold prices,” said Vecchio.

waheedabbas@khaleejtimes.com

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