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UAE: Gold prices inch up as dollar weakens; Dh24K trades at Dh218 per gram

Spot gold was little changed at $1,799.89 per ounce at 9.10am UAE time.

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Agencies file
by

A Staff Reporter

Published: Tue 1 Feb 2022, 9:23 AM

Gold prices slightly rose in the UAE and worldwide on Tuesday morning as a weaker dollar countered concerns about potential interest rate hikes.

Spot gold was little changed at $1,799.89 per ounce at 9.10 am UAE time, up by 0.11 per cent.

In the UAE, 24K gold price inched up by Dh0.25 per gram to Dh218.0 at the opening of the market on Tuesday. While 22K, 21K and 18K were trading at Dh204.75, Dh195.5 and Dh167.5 per gram, respectively.

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The dollar index moved away from multi-month peaks, as investors consolidated gains after the currency hit a 1-1/2-year high on Friday on expectations of a faster pace of rate hikes by the US Federal Reserve.

Goldman Sachs on Friday said it anticipates five rate hikes this year, while analysts at Bank of America Merrill Lynch expect seven rate hikes.

Naeem Aslam, chief market analyst at AVA Trade, said gold is trading below $1,800 because a surge in interest rates raises the opportunity cost of holding the precious metal, making it less appealing to investors. “Nonetheless, gold's appeal as a safe haven commodity and a hedge against rising consumer prices and volatility is likely to sustain it in the future.”

waheedabbas@khaleejtimes.com

A Staff Reporter

Published: Tue 1 Feb 2022, 9:23 AM

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