Analysts are expecting the US Federal Reserve to announce a 25 bps rate hike today
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Gold prices climbed in the UAE on Wednesday morning after precious metal prices rose globally late on Tuesday on expectations that the US Federal Reserve will end its monetary tightening cycle.
The Dubai Jewellery Group data showed 24K trading at Dh237.75 per gram on Wednesday at 9am, UAE time, up from Dh237 when the markets closed on Tuesday. Meanwhile, 22K, 21K and 18K were trading at Dh220, Dh213, and Dh182.50 per gram, respectively.
Spot gold inched 0.13 per cent lower to $1,962.93 per ounce by 9.20am, UAE time.
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Analysts are expecting the US Federal Reserve to announce a 25 bps rate hike today.
Alex Kuptsikevich, senior market analyst at FxPro, said the US dollar rose on Tuesday for the 6th consecutive session, weighing on gold. However, this corrective pullback now highlights gold's internal strength.
“Given the prospects for further declines, a dynamic near $1,947 and $1,910 will be necessary. A break below the former would take gold back below its 50-day moving average, and a break above it could be seen as a false break.
“A break below $1,910 will take the price below the previous local lows. Combined with the lower local highs from mid-July, this would form a downtrend, trashing the current bullish scenario,” said Kuptsikevich.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.