UAE: Gold prices slightly up in early trade in Dubai

Gold prices edged up on Tuesday morning, after retreating as much as 1 per cent in the last session, as the dollar eased, with the focus turning to minutes from the US Federal Reserve's latest meeting for clues on future rate hikes.

Spot gold rose 0.37 per cent to $1,744.66 per ounce by 9.10am UAE time.

In the UAE, 24K opened at Dh211.5 per gram on Tuesday morning as compared to its last night’s close of Dh211.25 per gram. Among the other variants of the precious metal, 22K was trading at Dh198.5 per gram, 21K at Dh189.5 and 18K at Dh162.5.

Gold fell for a fourth straight session on Monday as investors preferred the safety of the dollar to hedge against as fresh Covid-19 curbs in China that fuelled worries over the global economic outlook.

In addition, San Francisco Federal Reserve President Mary Daly said on Monday the real-world impact of the US central bank's interest rate hikes is likely greater than what its short-term rate target implies.

Edward Moya, a senior market analyst at Oanda, said gold will only be a safe-haven trade if the dollar is in a defensive mode.

“Gold needs China’s Covid situation to improve before it can start to look attractive again for investors. If the dollar rally turns excessive, gold could be vulnerable to a plunge towards the $1,700 level,” he said.

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