Gold prices opened weaker on Wednesday morning as 24K was trading below Dh215 per gram with global investors waiting for the outcome of the US Federal Reserve meeting.
Spot gold price fell 0.12 per cent to $1,770.43 per ounce at 9.20am UAE time.
In the UAE, 24K gold was trading at Dh214.75 per gram on Wednesday morning as compared to Dh216.25 per gram on Tuesday morning. While 22K, 21K and 18K opened at Dh201.75, Dh192.5 and Dh165.0 per gram, respectively.
Edward Moya, a senior market analyst at Oanda, said the precious metal did not stand a chance after US producer prices climbed sharply in November.
“Inflation is running too hot for gold to attract investors. Price pressures will persist and that will likely force many Fed members to signal more rate hikes than they were initially thinking. Some investors are adding dovish Fed hedges, but that is hardly the consensus on Wall Street,” added Moya.
Naeem Aslam, chief market analyst at London-based AVA Trade, said central bank meetings to be held this week are likely to be the biggest drivers of volatility for gold as hawkish monetary policies, as expected by the Fed, could push gold prices down.
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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