UAE: Gold prices edge down as investors watch central banks’ move on interest rates

Spot gold was down 0.04 per cent at $1,838.45 per ounce as of 9.15am UAE time

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Photo: AP
Photo: AP

A Staff Reporter

Published: Tue 21 Jun 2022, 9:44 AM

Gold prices edged down on Tuesday morning as investors kept a keen eye on posturing from major central banks on interest rate hikes for a clearer outlook for bullion.

Spot gold was down 0.04 per cent at $1,838.45 per ounce as of 9.15am UAE time.

Gold prices in UAE were slightly down at the opening of the market with 24K trading at Dh222.75 per gram, down Dh0.25 per gram from Monday’s close. While 22K, 21K and 18K opened at Dh209.25, Dh199.75 and Dh171.25 per gram, respectively.

Naeem Aslam, chief market analyst at Ava Trade, said for gold traders, there are two things that matter the most.

“Firstly, the risk-off mode among investors and traders when it comes to the stock price. If there is too much uncertainty in the market and traders are nervous about the stock market, we do some investors placing bids for the yellow metal, and that brings more shine to the metal. Secondly, the monetary policy stance among Fed members. Tomorrow, we do have Fed Chairman Jerome Powell testifying, and his commentary is highly likely to be a source of volatility for the gold price,” said Aslam.

Jeffrey Halley, a senior market analyst at Oanda, said gold has resistance at $1,860 and $,1880, 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, while I would need to see a couple of daily closes above $1,900 to get excited about the upside,” said Halley.


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