Dubai: Gold price rises above $1,800; 24K trades at Dh218.25

Dubai - Investors focus on Federal Reserve chairman Jerome Powell's speech

Gold prices were hovering above $1,800 an ounce on Tuesday morning on expectations that the US Federal Reserve might delay cutting back its stimulus amid rising cases of the Delta coronavirus variant.

Spot gold eased 0.15 per cent to $1,802.02 per ounce at 9.10 am UAE time. In the UAE, 24K opened at Dh218.25 per gram on Tuesday morning as against Dh216.5 on Monday morning.

The precious metal had risen to Dh218.75 at the close of the market on Monday in Dubai. Among the other variants of the precious metal, 22K was trading at Dh205.0, 21K at Dh195.75 and 18K at Dh167.75 per gram.

Investors are now focused on Federal Reserve chairman Jerome Powell's speech at the annual Jackson Hole, Wyoming, symposium awaiting guidance on the US central bank's taper plans.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.5 per cent to 1,006.66 tonnes on Monday from 1,011.61 tonnes on Friday.

Naeem Aslam, chief market analyst at AVA Trade, said the dollar index has risen in recent days, aided by a hawkish Fed, which hinting that a majority of policymakers believe the central bank should begin tapering its stimulus before the end of the year.

“Traders should dissect the Jackson Hole Symposium discussions to determine how markets will react in the short term,” he said.

waheedabbas@khaleejtimes.com

• Dubai