Investors focus on key US inflation reading which could influence Fed's next interest-rate hike
Photo: AP
Gold prices inched lower on Monday morning as investors focus on a key US inflation reading which could influence the size of the Federal Reserve's next interest-rate hike.
Spot gold fell 0.35 per cent to $1,712.23 per ounce at 9.10am UAE time.
In the UAE, the 24K gold price fell half a dirham to Dh207.5 per gram at the opening of the markets on Monday. Among the other variants of the precious metal, 22K opened at Dh195.0, 21K at Dh186.0 and 18K at Dh159.5 per gram.
The Federal Reserve officials on Friday ended their public comment period ahead of the US central bank’s September 20-21 policy meeting, with strong calls for another oversized rate increase to battle high inflation.
Edward Moya, a senior market analyst at Oanda, said gold is finding a home above the $1,700 level and that could continue if investors continue to look beyond hawkish central bank speak.
“Gold’s fate could be determined after this next inflation report. If consumer prices come in hotter-than-expected, gold might see selling pressure target the $1,680 region. A sharp deceleration with pricing pressures might only provide a modest boost higher for gold as policymakers,” said Moya.
waheedabbas@khaleejtimes.com
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