UAE: Gold prices rise, 24K jumps Dh1.5 per gram to Dh218.75

In the UAE, the precious metal prices rose in line with the global market.


A Staff Reporter

Published: Tue 11 Jan 2022, 9:22 AM

Gold prices rose on Tuesday morning, as markets anticipated quicker rate hikes based on key December US inflation data due later this week, while stronger bond yields continued to cap gains.

Spot gold was up 0.33 per cent to $1,807.31 per ounce at 9.10 am UAE time.

In the UAE, the precious metal prices rose in line with the global market. The Dubai Gold and Jewellery Group data showed 24K trading at Dh218.75 per gram on Tuesday morning, up Dh1.50 per gram from Monday’s close.

Among the other variants of the yellow metal, 22K opened higher at Dh205.5 per gram, 21K at Dh196.0 and 18K at Dh168.0.

The benchmark US 10-year Treasury yield hit an almost two-year high on Monday, as investors increasingly expect the Federal Reserve to begin tightening its policy with an interest rate hike as soon as March.

Goldman Sachs expects the Fed to raise interest rates four times this year and begin the process of reducing the size of its balance sheet as soon as July.

Naeem Aslam, chief market analyst at Ava Trade, said the precious metal’s price rose, aided by mediocre job growth in December 2021.

“Gold prices rose despite a hawkish Fed that is likely to stick to a faster taper and begin implementing interest rate hikes as early as March of this year. According to the data released, nonfarm employment surged by only 199,000, compared to the 400,000 increase predicted,” he said.

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