UAE: Gold prices rally to 4-week high as US dollar slips

Spot gold was up 0.3 per cent at $1,777.20 per ounce



by

A Staff Reporter

Published: Tue 2 Aug 2022, 9:56 AM

Gold prices notched a four-week high on Tuesday morning and extended their winning streak to a fifth session, as a dip in the US dollar and Treasury yields boosted demand for the safe-haven metal amid heightened worries over a global economic slowdown.

Spot gold was up 0.3 per cent at $1,777.20 per ounce.

In the UAE, the 24K opened at Dh214.75 per gram on Tuesday morning while 22K, 21K and 18K were trading at Dh201.75, Dh192.5 and Dh165.0 per gram, respectively.

Edward Moya, senior market analyst, Oanda, said gold can’t stop climbing higher now that a peak in Treasury yields has been made.

“King dollar lost its mojo and that has been great news for the yellow metal. Deteriorating economic data along with a weaker dollar is great news for bullion. Technical levels matter here and gold will need a fresh catalyst to break the $1,800 level. If the dollar pullback continues, that might be enough for gold’s rally to extend,” he said.

Moya added that the dollar days are not numbered, as the interest rate differential will widely remain in the greenback’s favour, as will US growth prospects, and safe-haven flows as Europe rushes towards a recession.

waheedabbas@khaleejtimes.com

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