UAE: Gold near 4-week low; 24K drops to Dh221 per gram

Gold prices hovered near a four-week low on Tuesday morning, as a strong dollar countered safe-haven demand fuelled by economic slowdown fears amid prospects of aggressive monetary policy tightening.

Spot gold was up 0.24 per cent at $1,824.76 per ounce at 9.30am UAE time.

In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh221.0 per gram at the opening of the market on Tuesday, down from Dh221.75 at the close of the market on Monday.

Among the other variants of the yellow metal, 22K opened at Dh207.75 per gram, 21K at Dh198.25 and 18K at Dh169.75.

The yellow metal suffered sharp declines on Monday, as the dollar rallied on bets for steep US Federal Reserve interest rate hikes, eroding the appeal of bullion and other precious metals.

Edward Moya, senior market analyst at Oanda, said gold prices are under pressure as Wall Street reassess how aggressive the Fed will have to be to get inflation under control.

“Treasury yields are surging and that theme will continue as supply side problems will continue to keep pricing pressures elevated. Gold will eventually see safe-haven flows but that won’t happen until the dollar hits a peak,” he said.

Moya added that recession risks are growing and that should ultimately be positive for gold prices.

-waheedabbas@khaleejtimes.com

ALSO READ:

• UAE posts Dh134.7b trade surplus with GCC states for 2021

• UAE: Gold prices fall over one dirham per gram in early trade