UAE: Gold prices inch higher ahead of US inflation data

The metal has started 2023 in good shape, extending a rally from the last two months of 2022, says expert

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A Staff Reporter

Published: Wed 11 Jan 2023, 9:48 AM

Gold prices inched higher on Wednesday, as traders awaited key US inflation data due this week to gauge the Federal Reserve's rate hike stance.

Spot gold was up 0.15 per cent to $1,880.16 an ounce at 9.15 am UAE time.

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The precious metal prices rose slightly in the UAE in line with global rates on Wednesday morning.

The Dubai Jewellery Group data showed 24K gold price opening at Dh227.25 per gram as compared to last night’s close of Dh227.0 per gram. Similarly, 22K, 21K and 18K also opened higher at Dh210.5, Dh203.75 and Dh174.75 per gram, respectively.

Gold prices have started 2023 in good shape, extending a rally from the last two months of 2022, said Edward Bell, senior director, market economics, Emirates NBD Research.

“Broad financial market expectation that the Federal Reserve will need to pull back on aggressive monetary tightening is helping to support the gold market even as Fed speakers show no sign of turning yet. We had expected that gold will do well in 2023 but thought the rally would come later in the year. We are now bringing forward our expectation that gold prices will move higher and be able to sustain at higher levels,” said Bell.

Edward Moya, senior market analyst, Oanda, said the yellow metal prices are holding near recent highs as traders grow optimistic the Fed won’t be able to follow through with their hawkish threats.

“Fed Chair Powell’s appearance at a Riksbank event was really a non-event as he didn’t focus on monetary policy. The next big move in gold seems like it will have to wait until this week's inflation report,” said Moya.

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A Staff Reporter

Published: Wed 11 Jan 2023, 9:48 AM

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