UAE: Gold gains on softer dollar with focus on Fed meeting

Spot gold was up 0.16 per cent at $1,722.28 per ounce at 9.10am UAE time

Photo: AP File

A Staff Reporter

Published: Tue 26 Jul 2022, 9:34 AM

Last updated: Tue 26 Jul 2022, 9:38 AM

Gold prices rose on Tuesday morning on the back of weaker dollar, but were stuck in a tight range as investors refrained from making big bets ahead of a possible aggressive US interest rate hike.

Spot gold was up 0.16 per cent at $1,722.28 per ounce at 9.10am UAE time.

In the UAE, the 24K price rose 25 fils to Dh208.5 per gram at the opening of the market on Tuesday. While 22K, 21K and 18K opened at Dh195.75, Dh186.75 and Dh160.25 per gram, respectively.

The dollar slipped for a fourth straight session, down 0.2 per cent against its rivals, making gold less expensive for buyers holding other currencies.

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"We're not really seeing a tremendous amount of directional conviction here. It seems like the market is most importantly waiting for the Fed announcement," said Ilya Spivak, a currency strategist at DailyFX.

Jeffrey Halley, senior market analyst, Asia Pacific, Oanda, said charts continue to suggest that while gold is trying to form a medium-term low, its price action remains underwhelming.

“We will have to wait until we get into the meat of the week's calendar to see if this scenario plays out. Gold needs to overcome heavy resistance at the $1,745 an ounce triple top before the gold bugs can really start to get excited,” said Halley.

The precious metal has support at $1,680, and then the longer-term support around $1,675 an ounce zone, he added.

-waheedabbas@khaleejtimes.com