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UAE: Gold prices ease as dollar strengthens

24K gold price drops Dh1.5 per gram in early trade

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Gold prices eased on Wednesday as the dollar firmed, although bullion still traded in a narrow range as investors awaited fresh cues from top central banks on their monetary policy plans, especially from the US Federal Reserve.

Spot gold fell 0.3 per cent to $1,825.9 per ounce by 9.15 am UAE time.

In the UAE, 24K gold price fell one-and-a-half dirham per gram at the opening of the market on Wednesday to Dh221.25 per gram as compared to last night’s close of Dh222.75 per gram.

While 22K, 21K and 18K opened at Dh207.75, Dh198.25 and Dh170.0 per gram, respectively.

Jeffrey Halley, a senior market analyst at Oanda, said gold has been grinding lower, even as US yields and the US dollar trade sideways.

“Overnight, gold edged 0.30 per cent lower to $1,833 an ounce, falling another 0.33 per cent in Asia as US dollar strength returns. A bout of US dollar strength post-Powell testimony could finally set up a meaningful test of the bottom of the recent range around $1,800 an ounce,” said Halley.

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He said gold has resistance at $1,860 and $1,880, the latter appearing an insurmountable obstacle for now. Support is at $1,805 and then $1,780 an ounce. Failure of the latter sets in motion a much deeper correction, potentially reaching $1,700 an ounce. On the topside, I would need to see a couple of daily closes above $1,900 to get excited about a reinvigorated rally,” added Halley.

-waheedabbas@khaleejtimes.com

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