UAE: Gold prices at one-year high; will they rise further?

The metal could 'continue to tear to the upside' given a slowing global economy with high inflation, says expert

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A Staff Reporter

Published: Wed 5 Apr 2023, 9:52 AM

Gold prices were trading higher on Wednesday to their highest levels since March 2022 after weak US economic data spurred safe-haven demand and expectations that the Federal Reserve might loosen its monetary policy trajectory.

Spot gold was up 0.1 per cent at $2,023.49 per ounce as of 9.20 am UAE time,

In the UAE, the 24K gold price jumped over Dh5 per gram on Tuesday, closing at Dh245.0. While 22K, 21K and 18K closed at Dh227.0, Dh219.75 and Dh188.25 per gram, respectively.

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“Gold could continue to tear to the upside," given a slowing global economy with high inflation, with the weakness in the US dollar allowing gold to "leap higher," said Clifford Bennett, chief economist at ACY Securities.

Naeem Aslam, chief investment officer, Zaye Capital Markets, said the precious metal has crossed above the $2,000 price level, an important resistance, but the most important thing to note here is how long it can continue to trade above this price handle.

“For now, the weakness in the dollar index and concerns over higher oil prices and their impact on the economy are very supportive of the price where it is now. But traders should adopt caution about how much of a dovish message they may hear from the Fed in the coming future,” he said, adding that economic data is really important today, and a number that could sting the bulls today would be the US ADP number.

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A Staff Reporter

Published: Wed 5 Apr 2023, 9:52 AM

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