Dubai: 24K gold price trades at Dh210 per gram

Dubai - The precious metal found some support in light of the Delta variant's rapid spread.

Gold prices slightly recovered on Wednesday morning due to worries over a surge in cases of the Delta coronavirus.

Spot gold was up 0.34 per cent at $1,733.82 per ounce by 10am UAE time.

In the UAE, 24K gold price was trading at Dh210.0 per gram on Wednesday morning as compared to Dh210.5 on Tuesday morning. Meanwhile, 22K, 21K and 18K were trading at Dh197.25, Dh188.25, and Dh161.25 per gram, respectively.

Naeem Aslam, chief market analyst at AVA Trade, said after falling nearly 4.4 per cent earlier, gold prices have found some support as the Delta variant rapidly spreads.

“However, investors should understand that the precious metal is likely to remain under pressure as the dollar index and treasury yields rise. The market anticipates that economic data released in the near future will point to continued economic recovery, allowing the US Federal Reserve to tweak its monetary policy by raising its policy rate and beginning to withdraw its highly addictive stimulus. This would have a negative impact on gold prices,” said Aslam.

In addition, the investors were waiting for the US inflation data due later in the day.

Ipek Ozkardeskaya, senior analyst at Swissquote, said gold missed its chance to shine over the past months.

“What would’ve made gold prices shine was soaring inflation expectations and falling US yields. But investors preferred piling into the stock markets, and to the cryptocurrencies, leaving gold behind the global risk rally. Now that the US yields are preparing to rebound, and inflation expected to soften, gold will likely lose its major bullish pillars, and dive deeper,” he said.

waheedabbas@khaleejtimes.com

• Dubai