Dubai: Gold prices jump over Dh2 per gram in early trade

Gold prices gained on Wednesday as investors keenly await key US inflation data for signs of how close interest rates are to peaking.

Spot gold was up 0.7 per cent at $2,018.93 per ounce as of 9.30 am UAE time. US gold futures rose 0.7 per cent to $2,032.40.

In the UAE, the 24K gold price jumped more than two dirhams on Wednesday morning to Dh244.75 per gram as compared to last night’s close of Dh242.5 per gram. While 22k, 21K and 18k were trading at Dh226.5, Dh219.25 and Dh188.0 per gram, respectively.

All eyes are on the US consumer price index (CPI) data, due at 4.30 pm UAE time, for clues on the Federal Reserve's rate hike path.

Gold could continue to drift higher "as early birds place their bets on a soft inflation report," said Matt Simpson, senior market analyst at City Index.

"A soft inflation print could send gold prices above $2,032 to mark a fresh year-to-date high, given the inverted yield curve, talks of soft growth and rise of geopolitical tensions across parts of Asia," he said.

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