UAE: Gold prices inch lower, drop half a dirham per gram in Dubai

Traders focus on Federal Reserve chairman Jerome Powell's speech, wait to see how the Fed reacts to the December inflation report

A Staff Reporter

Published: Tue 10 Jan 2023, 9:37 AM

Gold prices inched lower on Tuesday as the US dollar witnessed an uptick, with traders largely focusing on Federal Reserve chairman Jerome Powell's speech for insights into the central bank's rate hike path.

Spot gold was down 0.2 per cent at $1,868.85 per ounce.

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In the UAE, gold prices fell nearly half a dirham at the opening of the markets on Tuesday. The Dubai Jewellery Group data showed 24K trading at Dh226.75 per gram as compared to last night’s close of Dh227.25. Meanwhile, 22K, 21K and 18K opened at Dh209.75, Dh203.25 and Dh174.0 per gram, respectively.

Edward Moya, a senior market analyst at Oanda, said it looks like everyone is liking gold as the peak in yields appears to be in place.

“Gold could see further momentum if China's optimism continues. Ahead of the Lunar New holiday, retail gold buying should improve even as prices are elevated,” he said.

Moya added that the precious metal’s rally, however, should run out of steam as traders will await to see how the Fed reacts to the December inflation report.

“Expectations are for the disinflation trends to continue, but core CPI might struggle to come down as quickly. Energy prices plunged in December, but that positive contribution to the fight against inflation might go away this month. Gold has massive resistance at the $1,900 level, but that might not last if core prices cool much more quickly,” he said.

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