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UAE: Gold prices flat, could gain support on recession worries

Spot gold was flat at $1,811.07 per ounce, as of 9.20am UAE time

Published: Tue 5 Jul 2022, 10:20 AM

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Gold prices were largely flat on Tuesday morning as investors stayed away due to a softening inflation outlook and impending interest rate hikes from top central banks.

Spot gold was flat at $1,811.07 per ounce, as of 9.20am UAE time.

In the UAE, the 24K gold price fell 25 fils per gram to Dh219.25 per gram at the opening of the market on Tuesday.

Among the other variants of the yellow metal, 22K opened at Dh206.0 per gram, 21K at Dh196.75 and 18K at Dh168.5.

Gold's inflation-hedge appeal is tarnished by a softer inflation outlook, with looming global rate hikes also dimming the outlook for the non-yielding asset, said Stephen Innes, managing partner at SPI Asset Management.

“While we are stuck in the $1,790 to $1,830 range, gold could be supported on recession worries and possibly the Federal Reserve softening their policy stance as the market pivots from inflation concerns," Innes said.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said rising geopolitical tensions and the sharp fall in the US yields are supportive of a short-term rebound. “In the medium run, the death cross formation on the daily chart hints that we should see a strong resistance into the $1,850 mark,” Ozkardeskaya said.

-waheedabbas@khaleejtimes.com

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