UAE: Gold jumps ahead of US inflation data; 24K trades at Dh222.25

Globally, spot gold rose 1.42% to $1,833.69 per ounce at 9.13am UAE time.



Reuters
Reuters
by

A Staff Reporter

Published: Thu 10 Feb 2022, 9:23 AM

Gold prices rose on Thursday, jumping on dirham per gram in the UAE at the opening of the market.

The Dubai Gold and Jewellery Group data showed a 24K price rising to Dh222.25 per gram on Thursday morning as compared to the previous session’s close of Dh221.25. Among the other variants of the precious metal, 22K rose to Dh208.75, 21K to Dh199.25 and 18K to Dh170.75.

Globally, spot gold rose 1.42 per cent to $1,833.69 per ounce at 9.13 am UAE time.

Investors were waiting for US inflation data that could offer fresh clues about the pace of the Federal Reserve's monetary policy tightening.

“I think the dollar is going to weaken off despite yields going higher because every other central bank is raising interest rates... to defend against inflation," Stephen Innes, managing partner at SPI Asset Management, told Reuters.

“If the Fed starts ramping up rates too quickly, it's not good for the economy, especially with every other central bank doing the same thing in unison. In that sense, gold could actually be a pretty decent hedge over the long term."

Edward Moya, senior market analyst at Oanda, said gold prices continue to consolidate ahead of a pivotal inflation report that should tilt market expectations into either pricing anywhere between four to six Fed rate hikes this year.

“Gold tentatively pushed higher following the drop in global bond yields but was unable to break above the upper boundaries of its broadening trading range. Geopolitical risks will continue to provide some support for gold as an immediate de-escalation with the Ukraine situation seems unlikely and so does a revival of the Iran nuclear deal.

“The gold market is divided on what will be the next move and that should be good news for patient bulls. Aggressive easing still seems the least less likely path for the Fed and if some of the more hawkish expectations come down, gold continues to rise,” he added.

-waheedabbas@khaleejtimes.com


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