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Time to buy: Gold holds steady but will gain in coming months

reporters@khaleejtimes.com Filed on June 9, 2021
Photo: Reuters

The US consumer price index report due on Thursday is expected to provide more clues on when the Federal Reserve will dial back monetary stimulus.


Gold prices were steady at the opening of the trade on Wednesday as investors were waiting for more data on US inflation and the European Central Bank policy meeting.

Spot gold was up 0.27 per cent at $1,894.16 per ounce, as of 9.15am UAE time.

In UAE, the Dubai Gold and Jewellery Group data showed 24K gold trading at Dh229.5, 22K at Dh215.5, 21K at Dh205.75, and 18K at Dh176.25 per gram on Wednesday morning.

"What I am looking at is the build-up to the FOMC meeting... the Fed may start to discuss about taper and this is getting highlighted," Stephen Innes, managing partner at SPI Asset Management, told Reuters.

"The market is still of the opinion that it (the Fed) is going to a dovish taper and we have inflation aspects, which should be relatively positive for gold."

The US consumer price index report due on Thursday is expected to provide more clues on when the Federal Reserve will dial back monetary stimulus. The ECB policy meeting is also scheduled on Thursday.

"We expect further gains (to gold) in the coming months amidst rising inflation pressuring US treasury real yields, a weak US dollar, and renewed waves of Covid-19 infections gripping countries across the world," Fitch Solutions said in a note.

waheedabbas@khaleejtimes.com

Staff Reporter





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