UAE: Gold prices jump in early trade

It is still vulnerable to another massive selloff, says senior market analyst



by

Waheed Abbas

Published: Thu 8 Sep 2022, 9:36 AM

Gold prices in the UAE opened higher at the opening of the markets on Thursday morning.

Spot gold was trading at $1,715.8 per ounce as of 9.20 am UAE time.

In the UAE, the 24K gold price jumped to Dh207.75 per gram on Thursday morning, as compared to Dh206.25 per gram at the close of the markets on Wednesday.

Among the other variants of the yellow metal, 22K opened higher at Dh195.25 per gram, 21K at Dh186.25 and 18K at Dh159.5.

“The gold price has managed to stay above $1,710 so far today as the US dollar appeared to take a break from its upward trajectory of late. Treasury yields softened despite hawkish commentary from Federal Reserve Bank of Cleveland President Loretta Mester and Federal Reserve Vice Chair Lael Brainard,” said Daniel McCarthy, strategist at DailyFx.

Edward Moya, a senior market analyst at Oanda, said gold is tentatively holding the $1,700 level and is still vulnerable to another massive selloff, but for now, it appears to be stabilising.

Investors were also awaiting the European Central Bank's rate action due later in the day.

The ECB is set to raise rates by 75 basis points today, according to a Bloomberg survey of economists.

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