UAE: Gold prices ease; 24K drops to Dh230 per gram in Dubai

Gold prices eased on Wednesday as the dollar held ground at its highest in more than two years and pressured demand for greenback-priced bullion.

Spot gold was down 0.44 per cent at $1,898.37 per ounce, as of 9.12 am UAE time.

In the UAE, 24K gold prices fell from Dh230.75 on Tuesday evening to Dh230.0 per gram on Wednesday morning. Also, 22K, 21K and 18K prices slipped to Dh216.0, Dh206.0 and Dh176.75 per gram respectively at the opening of the market on Wednesday..

The dollar held steady after climbing to its highest since March 2020 on Tuesday as concerns about slowing growth in China and expectations the Federal Reserve will aggressively hike rates boosted demand for the greenback.

A stronger dollar makes greenback-priced gold less attractive for other currency holders.

Gold prices had found some support in the previous session as investors sought cover from fears of stalling global economic growth and soaring inflation.

Bullion is seen as a safe store of value during economic and political crises.

Russia will on Wednesday stop supplying gas to Poland and Bulgaria, the two Nato and EU members said, an escalation in the deepening rift between the West and Moscow over Ukraine as tensions also surged in neighbouring Moldova.

waheedabbas@khaleejtimes.com

• Dubai