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UAE: Gold prices jump nearly Dh2 in Dubai in early trade

Investors and analysts are keeping an eye on the annual Jackson Hole Symposium in Wyoming later this week for any hints on how high can interest rates go

Published: Wed 23 Aug 2023, 9:50 AM

Updated: Wed 1 Nov 2023, 7:32 AM

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Gold prices jumped by nearly Dh2 in the UAE on Wednesday morning after the precious metal crossed the $1,900 an ounce level.

According to the Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh230.50 per gram at the opening of the markets on Wednesday, up from Dh228.75 at the close of the markets on Tuesday.

Similarly, 22K, 21K and 18K prices rose to Dh211.75, Dh205 and Dh175.75 per gram, respectively, at 9am UAE time.

Spot gold was up 0.24 per cent at $1,903.1 per ounce at 9.20am UAE time, due to a dip in the US dollar and Treasury yields.

[Editor's Note: For real-time gold rates, click the widget below or visit KT's dedicated Trading News page here.]

Investors and analysts are also keeping an eye on the annual Jackson Hole Symposium in Wyoming later this week for any hints on how high can interest rates go, with a particular focus on Federal Reserve Chair Jerome Powell's speech on Friday.

Wael Makarem, senior market strategist for Mena at Exness, added that gold prices rebounded to a certain extent after a series of losses after the impact of rising yields in US treasuries.

“Investors turn their attention at the moment to the Federal Reserve’s president, Jerome Powell, speech on Friday. Despite the rebound, gold prices could remain under pressure as they stay below key resistance levels and record lower lows,” he said.

Ole Hansen, head of commodity strategy at Saxo Bank, said gold prices, in a relatively steep decline for the past month, are showing signs of stabilising.

He added that 10-year US Treasury yields have surged to a 16-year high on speculation the Fed may have to hike rates further and keep them higher for longer, as incoming economic data points to continued price pressure. “Instead of yields, the attention, for now at least, seems to focus on a softer dollar, the Fed chairs speech at Jackson Hole on Friday and the BRICS meeting starting today,” said Hansen.

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