UAE: Gold steady at 3-month high; 24K trades at Dh221 per gram

Prices for the precious metal surged as the bond market selloff appears to be over for now

Waheed Abbas

Published: Thu 20 Jan 2022, 9:42 AM

Gold prices on Thursday steadied near a two-month high hit on Wednesday evening, with higher US Treasury yields preventing any gains amid caution building around developments at the US Federal Reserve's meeting due next week.

Spot gold was flat at $1,839.13 per ounce at 9.20 am UAE time.

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In the UAE, precious metal prices remained unchanged from last night's close. The Dubai Gold and Jewellery Group data showed 24K trading at Dh221.0 per gram, 22K at Dh207.5, 21K at Dh198.0 and 18K at Dh169.75.

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Gold saw its best session in three months on Wednesday as a retreat in the dollar and geopolitical tensions surrounding Ukraine lifted safe-haven appeal, sparking a rally in precious metals.

Edward Moya, senior market analyst at Oanda, said gold prices surged as the bond market selloff appears to be over for now.

"Gold traders used the London Bullion Market Association auction as the catalyst to send prices tentatively above the upper boundaries of its recent trading range. After the 10-year Treasury failed to reach 1.90 per cent, that was the all-clear signal for many traders to pile back into risk assets such as commodities," said Moya.

"Gold wasn't supposed to break above the $1,840 level before next week, so it should be interesting to see if this rally sticks," he added.

-waheedabbas@khaleejtimes.com