UAE: Gold prices open lower in Dubai on first trading day of the week

The dollar index held firm, making bullion less attractive for buyers holding other currencies

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Waheed Abbas

Published: Mon 19 Jun 2023, 9:53 AM

Last updated: Fri 23 Jun 2023, 12:16 PM

Gold prices dipped in the UAE and globally at the opening of the markets on the first trading day of the week as the US dollar strengthened on Monday.

According to Dubai Jewellery Group data, the 24K was trading at Dh237.0 per gram, down from last week’s close of Dh237.25 per gram.

Meanwhile 22K, 21K and 18K opened at Dh219.5, Dh212.5 and Dh182.0 per gram, respectively.

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Globally, spot gold fell 0.1 per cent to $1,955.49 per ounce. The dollar index held firm, making bullion less attractive for buyers holding other currencies.

Ipek Ozkadeskaya, Senior Analyst, Swissquote Bank, said last week was a bit confusing in terms of where the Federal Reserve (Fed) is headed, after the dot plot showed two more possible rate hikes before the year ends, versus a final rate hike expected in July.

Naeem Aslam, chief investment officer, Zaye Capital Markets, said the precious metal is still very much on the back foot when it comes to price action.

“The price action lags momentum, and traders are worried that the risk on the trade is taking the shine away from the metal. Secondly, the Fed’s hawkish stance has made it clear that there will be two more interest rate hikes this year, and traders know that it would make the dollar index even stronger, which isn’t the ideal scenario for the gold price,” said the London-based analyst.

“The Fed Chairman’s testimony will be the most closely watched event by gold traders, who are hoping to see some dovishness in the Fed’s comments, but in reality, it is less than likely,” he added.

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Waheed Abbas

Published: Mon 19 Jun 2023, 9:53 AM

Last updated: Fri 23 Jun 2023, 12:16 PM

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