Traders awaited comments from a slew of Federal Reserve officials this week to assess how soon the US central bank may start cutting interest rates
Gold prices rose by Dh0.75 per gram at the opening of the markets in the UAE on Wednesday.
According to Dubai Jewellery Group data, the 24K was trading at Dh246.5 per gram on Wednesday morning as compared to Dh245.75 at the close of the markets on Tuesday. While 22K, 21K and 18K also opened higher at Dh228.25, Dh2210.0 and Dh189.25 per gram, respectively.
Spot gold held its ground at $2,034.82 per ounce, as of 9.18am UAE time as traders awaited comments from a slew of Federal Reserve officials this week to assess how soon the US central bank may start cutting interest rates.
David Cottle, analyst at dailyFX, said last week’s news of astonishing job creation has seen interest-rate-cut bets taken off for March, although a May move remains very much in play, hugely to the dollar’s benefit.
He said that the yellow metal could stay above the important $2,000 an ounce level even as the dollar’s strength has brought that level rather closer to the market.
“We’re heading into a rather quieter period of scheduled economic data, which will leave gold prices in thrall to general market risk appetite and, in all likelihood, whatever coming individual Fed speakers have for the market,” he said.
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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.