UAE: Gold prices steady ahead of US inflation data

Spot gold was trading at $1,785.82 per ounce at 9.20am UAE time

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File photo

A Staff Reporter

Published: Tue 9 Aug 2022, 9:37 AM

Gold prices were steady on Tuesday morning as investors awaited US inflation data due later in the week that could offer more clarity on the Federal Reserve's rate-hike plans to combat rising pricing pressures.

Spot gold was trading at $1,785.82 per ounce at 9.20am UAE time.

In the UAE, the 24K gold opened at Dh216.25 per gram on Tuesday morning, remaining unchanged from its last night’s close. While 22K, 21K and 18K were trading at Dh203.25, Dh194.0 and Dh166.25 per gram, respectively.

Investors are looking ahead to the US consumer price report for July, which will be released on Wednesday. Analysts polled by Reuters expect annual inflation to have eased to 8.7 per cent from 9.1 per cent in June.

Craig Erlam, a senior market analyst at Oanda, said gold is flat after Friday's jobs report took the wind out of its sails.

“The recovery trade was being fuelled by the belief that data-dependency meant a slower pace of tightening but that's now clearly not the case. We may see some nervy trading in the yellow metal ahead of Wednesday's inflation report although it still seems to have an eye on $1,780-$1,800 which is the next major test to the upside,” said Erlam.

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