UAE: Gold prices drop over Dh2 per gram; 24K opens at Dh218.75

Spot gold was trading at $1,805.94 per ounce at 9.20 am UAE time, down by 0.23%


A Staff Reporter

Published: Thu 6 Jan 2022, 9:38 AM

Gold prices fell on Thursday morning in the UAE and worldwide as a surge in US Treasury yields following hawkish meeting minutes released by the Federal Reserve offset the precious metal’s safe-haven demand amid rising cases of the Omicron coronavirus variant.

Spot gold was trading at $1,805.94 per ounce at 9.20 am UAE time, down by 0.23 per cent.

In the UAE, gold prices fell more than Dh2 per gram at the opening of the market. the 24K opened at Dh218.75 per gram on Thursday, down from Wednesday’s close of Dh221.25. Among the other variants of the yellow metal, 22K opened at Dh205.0, 21K at Dh196.0 and 18K at Dh168.0

Jaffrey Halley, senior market analyst at Oanda, said with US yields and the US dollar holding their gains but trading sideways, gold eased 0.25 per overnight.

“Given the price action overnight, it appears that gold is still vulnerable to higher US yields and a higher US dollar. Any rallies should be approached with a great deal of caution and scepticism. $1,790.0 to $1,820.0 remains my call for the range this week. Gold has resistance at $1,830.0 and $1,840.0 an ounce, although it would be a huge surprise if we saw those levels. Support lies at $1,798.0, followed by $,1790.0 and $1,780.0 an ounce,” said Halley.

Vijay Valecha, chief investment officer, Century Financial, said gold bulls appear to be pausing before making their next move, with eyes on the US jobs data.

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