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UAE: Gold prices open higher in early trade

The Fed’s data-dependent stance means their decision will be highly sensitive to the incoming economic data from the US

Published: Wed 7 Jun 2023, 9:50 AM

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Gold prices opened higher in the UAE on Wednesday morning with all eyes set on the US Federal Reserve meeting next week.

According to Dubai Jewellery Week, the 24K was trading at Dh238.0 per gram as compared to yesterday’s opening of Dh237.5 per gram. While 22K, 21K and 18K were trading at Dh220.25, Dh213.25 and Dh182.75 per gram, respectively.

Spot gold was little changed at $1,963.57 per ounce in the morning.

Vijay Valecha, chief investment officer, Century Financial said, the Fed’s data-dependent stance means their decision will be highly sensitive to the incoming economic data from the US.

“Investors will be on the lookout for the US May CPI report next week followed by the FOMC meeting. A survey from the Institute for Supply Management showed the US services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Fed’s fight against inflation. Lower interest rates tend to lift gold as it reduces the opportunity cost of holding the non-yielding asset,” added Valecha.

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