UAE: Gold prices inch up, but rate hike fears limit gains

Gold prices edged higher on Monday morning on a softer dollar, although central banks worldwide retained their aggressive monetary policies to tackle soaring inflation, limiting gains for safe-haven bullion.

Spot gold was up 0.3 per cent at $1,665.29 per ounce.

In the UAE, the 24K gold price inched up Dh0.25 per gram to Dh201.5 at the opening of the markets on Monday. While 22K, 21K and 18K opened at Dh189.25, Dh180.75 and Dh154.75 per gram, respectively.

The US Federal Reserve policymakers have been resolute in raising interest rates despite the turmoil in global financial markets.

Lael Brainard, Fed’s vice-chairman, on Friday, added her full endorsement of the US central bank's higher-for-longer game plan for interest rates to curb inflation.

Rising interest rates dim bullion's appeal as they increase the opportunity cost of holding the non-yielding asset.

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