The US dollar index fell 0.1 per cent, making greenback-priced gold more attractive to other currency holders
Photo: Reuters
Gold prices opened higher in the UAE on Tuesday morning by half a dirham per gram.
The 24K variant of the yellow metal was trading at Dh245.5 per gram as against last night’s close of Dh245.0 per gram. Similarly, 22K, 21K and 18K also opened higher at Dh227.25, Dh220.0 and Dh188.75 per gram, respectively, according to Dubai Jewellery Group data.
Spot gold rose 0.32 per cent to $2,027.49 per ounce by 9.19 am UAE time as the US dollar edged lower while investors awaited interest rate decisions from several central banks and a slew of economic data in the United States this week.
The US dollar index fell 0.1 per cent, making greenback-priced gold more attractive to other currency holders.
Federal Reserve officials last week said the US central bank was in hand before any rate cut judgement could be made and that the baseline for cuts to start was in the third quarter.
Lower interest rates decrease the opportunity cost of holding bullion.
"If central banks continue to counter the prevailing narrative that rate cuts will occur sooner rather than later, this could pressure the gold price from a yield perspective," said Tim Waterer, chief market analyst at KCM Trade.
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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.