UAE: Gold prices ease as dollar strengthens

24K gold price drops Dh1.5 per gram in early trade

By A Staff Reporter

Published: Wed 22 Jun 2022, 9:39 AM

Gold prices eased on Wednesday as the dollar firmed, although bullion still traded in a narrow range as investors awaited fresh cues from top central banks on their monetary policy plans, especially from the US Federal Reserve.

Spot gold fell 0.3 per cent to $1,825.9 per ounce by 9.15 am UAE time.

In the UAE, 24K gold price fell one-and-a-half dirham per gram at the opening of the market on Wednesday to Dh221.25 per gram as compared to last night’s close of Dh222.75 per gram.

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While 22K, 21K and 18K opened at Dh207.75, Dh198.25 and Dh170.0 per gram, respectively.

Jeffrey Halley, a senior market analyst at Oanda, said gold has been grinding lower, even as US yields and the US dollar trade sideways.

“Overnight, gold edged 0.30 per cent lower to $1,833 an ounce, falling another 0.33 per cent in Asia as US dollar strength returns. A bout of US dollar strength post-Powell testimony could finally set up a meaningful test of the bottom of the recent range around $1,800 an ounce,” said Halley.

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He said gold has resistance at $1,860 and $1,880, the latter appearing an insurmountable obstacle for now. Support is at $1,805 and then $1,780 an ounce. Failure of the latter sets in motion a much deeper correction, potentially reaching $1,700 an ounce. On the topside, I would need to see a couple of daily closes above $1,900 to get excited about a reinvigorated rally,” added Halley.

-waheedabbas@khaleejtimes.com