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UAE: Gold prices in Dubai recover after 1% drop

The yellow metal prices lost nearly one per cent globally on Tuesday due to strong US housing data and a firmer dollar

Published: Wed 21 Jun 2023, 9:47 AM

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Gold prices rose at the opening of the markets in the UAE on Wednesday after the precious metal plunged one per cent yesterday.

The 24K variant of the precious metal was trading at Dh234.5 per gram on Wednesday morning, up from Dh234.0 per gram at the close of the markets on Tuesday.

While prices of 22K, 21K and 18K were trading at Dh217.25, Dh210.25 and Dh180.25 per gram, respectively.

Spot gold held its ground at $1,935.68 per ounce by 9.10 am UAE time.

The yellow metal prices lost nearly one per cent globally on Tuesday due to strong US housing data and a firmer dollar.

On Wednesday, investors were also waiting for the US Federal Reserve chairman Jerome Powell’s congressional testimony for cues to take further positions.

“Powell will provide a testimony to the House Financial Services Committee where he will likely stress that more work is required to push back against inflation even as it has slowed substantially in the US. We would expect questions to revolve around why the Fed chose to keep policy unchanged at its June FOMC meeting even though members signalled more hikes ahead,” Emirates NBD Research said in a note on Wednesday.

Vijay Valecha, chief investment officer, Century Financial, said at the last meeting of the Fed, it was decided to leave the key rate unchanged, but Jerome Powell gave a clear signal that rate hikes will continue this year.

“There were also some concerns about the stability of the banking sector, which is a positive factor for gold,” he said.

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