UAE: Gold prices steady as market assesses Fed move after Opec+'s output cut

24K was trading at Dh239.75 per gram at opening hours of the markets

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By A Staff Reporter

Published: Tue 4 Apr 2023, 9:50 AM

Last updated: Mon 5 Jun 2023, 2:17 PM

Gold prices were steady on Tuesday morning as traders assessed the likely path of the Federal Reserve's monetary policy after data showed a slump in US manufacturing activity and as Opec+’s production cut sparked inflationary risks.

Spot gold was trading at $1,980.24 per ounce as of 9.20 am UAE time.

In the UAE, the 24K was trading at Dh239.75 per gram at the opening of the markets. While 22K, 21K and 18K were trading at Dh222.0, Dh215.0 and Dh184.25 per gram, respectively.

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Brent and crude oil prices were holding on to their gains, which they scored on the back of Opec’s surprise cut.

Naeem Aslam, chief investment officer, Zaye Capital Markets, said the precious metal continues to flirt with the level of $2,000 per ounce, and this week the price can topple that level on the back of economic readings.

“The US Non-Farm Payrolls number and the US ADP data are the most economic data sets that can make gold's price truly challenge that level. Remember, what is anticipated here is that bad news is good news for the economy, and this means a slower economic reading is more likely to force the Fed to stop pushing the curve further,” he said.

Gold in the near term could see "consolidative price action in absence of a fresh catalyst and as markets monitor the extent of price gains in oil as that may throw a curve ball on inflation outlook and complicate monetary policy decision," said Christopher Wong, strategist, OCBC FX.

-waheedabbas@khaleejtimes.com

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A Staff Reporter

Published: Tue 4 Apr 2023, 9:50 AM

Last updated: Mon 5 Jun 2023, 2:17 PM

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