Dubai: Gold prices edge higher on softer dollar

Traders assess prospects of the Federal Reserve raising interest rates just once more in May before pausing

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Photo: Reuters file
by

A Staff Reporter

Published: Wed 19 Apr 2023, 10:45 AM

Gold prices edged higher in Dubai and worldwide on Wednesday morning, helped by a softer US dollar, while traders assessed prospects of the Federal Reserve raising interest rates just once more in May before pausing.

Spot gold was up 0.1 per cent at $2,006.09 per ounce.

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In the UAE, the 24K was trading half a dirham up at the opening of the markets on Wednesday. According to Dubai Jewellery Group data, 24K opened at Dh242.5 per gram, while 22K, 21K and 18K opened at Dh224.75, Dh217.5 and Dh186.5 per gram, respectively.

The US central bank should continue raising interest rates on the back of recent data showing inflation remains persistent while the broader economy seems poised to continue growing, even if slowly, St. Louis Fed President James Bullard said on Tuesday.

Daniel Dubrovsky, contributing senior strategist, dailyFX, said the anti-fiat yellow metal benefited from a cautiously weaker US dollar as traders continued to fine-tune their expectations of where the Federal Reserve might take interest rates later this year.

“On the daily chart, gold continues to face the downside risk of the aftermath of a Bearish Engulfing. Downside follow-through has been lacking, with prices being supported by the 20-day Simple Moving Average... For the time being, watch the moving average for key support. In the event of a turn higher, the 2022 high at $2,070.42 remains a key level to watch,” he said.

waheedabbas@khaleejtimes.com

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A Staff Reporter

Published: Wed 19 Apr 2023, 10:45 AM

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