UAE: Gold prices near 2-week high; 24K rises to Dh221.25 per gram

Gold prices were trading near a two-week high on Wednesday morning ahead of a widely expected robust US inflation data but higher US Treasury yields kept the precious metal gains in check.

Spot gold was up 1.1 per cent at $1,827.92 per ounce at 9.30 am UAE time.

In the UAE, the Dubai Gold and Jewellery Group data showed 24K opening slightly her Dh221.25 per gram. While 22K, 21K and 18K were trading at Dh208, Dh198.25 and Dh170.0 per gram on Wednesday morning, respectively.

“The focus is on real rates, and although they are higher, they remain negative ... so there is a bit of a push-and-pull here, where on the one hand, real rates are going up, which is gold-negative, but they still remain less attractive than gold,” said Ilya Spivak, currency strategist at DailyFX.

Craig Erlam, senior market analyst at Oanda, said the gold rally has been relentless recently with the yellow metal notching up five days of gains in the last six and it's on course to add another to that.

“It seems gold is fulfilling its historic role as an inflation hedge despite so many rate hikes already being priced in. Whether that's the expectation of more or fear of it, gold has remained a favourite for investors. Whether it can continue to build on recent gains is another thing” he said.

Erlam said the area around $1,830 has repeatedly been a major barrier and when it has briefly managed to overcome that, it hasn't progressed much further. It will be interesting to see if history repeats itself.

waheedabbas@khaleejtimes.com

• Dubai