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UAE: Gold prices inch up in early trade

Spot gold was up 0.15 per cent at $1,781.1 per ounce at 9.25am

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Gold prices inched higher on Tuesday morning after falling more than one per cent in the previous session.

Spot gold was up 0.15 per cent at $1,781.1 per ounce at 9.25 am UAE time.

In the UAE, the 24K gold price rose half a dirham to Dh215.75 per gram at the opening of the markets on Tuesday. While 22K, 21K and 18K were trading at Dh202.75, Dh193.5 and Dh165.75 per gram, respectively.

Vijay Valecha, chief investment officer at Century Financial, said gold traders will also have to monitor the dynamics of US Treasury markets.

“The yield of two-year Treasuries has stabilised near 3.25 per cent and is trying to gain additional upside momentum. In case, if it manages to settle above 3.30 per cent, it will have a good chance to get to the test of the yearly highs near 3.45 per cent, which could make gold weaker,” added Valecha.

He sees gold facing resistance at $1,802 and $1,822, while wupport at $1,755 and $1,726.

David Song, strategist at dailyFX, said it remains to be seen if the Federal Open Market Committee (FOMC) Minutes will influence the price of gold as the slowdown in the US Consumer Price Index (CPI) dampens bets for another 75bp rate hike, but hints of a looming shift in the Fed’s approach for combating inflation may prop up the precious metal as the central bank appears to be on track to wind down its hiking-cycle over the coming months.

waheedabbas@khaleejtimes.com

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