UAE: Gold prices rise, seen shining in 2022

Gold prices rose on Wednesday morning as the 24K price jumped to Dh219.75 per gram at the opening of the market in Dubai.

The Dubai Gold and Jewellery Group data showed 24K rising by Dh0.75 per gram on Wednesday as compared to Tuesday’s close of Dh219.0. Among the other variants of the precious metal, 22K opened higher at Dh206.5 per gram, 21K at Dh197.0 and 18K at Dh169.0.

Globally, spot gold rose 0.09 per cent to $1,815.52 at 9.22 am UAE time on Wednesday.

Edward Moya, senior market analyst at Oanda, said the yellow metal should have a strong year once financial markets have a better handle on when the US Federal Reserve reduces its bond holdings.

“Gold will shine in 2022 even with three Fed rate hikes being priced in, as the 800-pound gorilla in the room remains how will they go about reducing their $9 trillion balance sheet,” he said.

Jaffrey Halley, senior market analyst at Oanda, said with US yields and the US dollar holding their gains but trading sideways, gold showed some fighting spirit, or perhaps blind optimism, to carve out a decent gain overnight.

“As ever, gold tends to run for cover at the first sign of trouble, so I would not say that gold has ‘weathered the storm’ for one instant,” he said.

waheedabbas@khaleejtimes.com

• Dubai