UAE: Gold prices ease; 22K opens at Dh221 per gram in Dubai

Gold prices eased on Monday, as the dollar and Treasury yields firmed on prospects of aggressive interest rate hikes by the US Federal Reserve, while fresh concerns over Russia's attacks in eastern Ukraine lent some support to the safe-haven metal.

Spot gold was down 0.16 per cent at $1,941.59 per ounce at 9.10 am UAE time.

In the UAE, 24K gold price opened at Dh235.25 per gram on Monday, down by half a dirham from its previous close. While 22K, 21K and 18K were trading at Dh221.0, Dh210.75 and Dh180.75, respectively, at the opening of the market on Monday.

Jeffrey Halley, senior market analyst, Oanda, said gold appears to have found haven-related buyers hedging weekend risks, but it still did not manage to take out resistance at $1,950 an ounce.

“Gold is still range trading, albeit to the higher end of that range. I believe the risks are still skewed to the downside for gold, especially if US yields and the dollar keep climbing. Gold needs to break through $1,950 and $1,970 an ounce to change that outlook. Failure of $1,915 will signal a retest of important support at $1,880 and possibly $1,800 an ounce,” said Oanda.

Naeem Aslam, chief market analyst at Ava Trade, said the precious metal is likely to remain volatile while investors continue to adjust their portfolios according to the US Federal Reserve's hawkish monetary policy while keeping a close eye on the economic fallout of the Ukraine crisis.

“In terms of price action, it is very clear that traders would like to have more clarity on geopolitical uncertainty between the US and Russia and the rising inflation situation in the US. Supply-side disruptions, worsened by the Russia–Ukraine war, are likely to keep inflation higher for longer,” added Aslam.

waheedabbas@khaleejtimes.com

• Dubai