UAE: Gold prices steady in early trade

Spot gold was steady at $1,845.2 per ounce at 9.10am UAE time, down by 0.04%

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Agencies file
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A Staff Reporter

Published: Thu 2 Jun 2022, 9:24 AM

Last updated: Thu 2 Jun 2022, 10:13 AM

Gold price held its ground on Thursday morning, supported by lower US Treasury yields, after mounting concerns over stubborn inflation worldwide helped prices rebound from their lowest level in two weeks in the previous session.

Spot gold was steady at $1,845.2 per ounce at 9.10 am UAE time, down by 0.04 per cent.

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In the UAE, gold prices slipped Dh0.25 per gram at the opening of the market on Thursday.

The Dubai Gold and Jewellery Group data showed 24K trading at Dh223.5 per gram, 22K at Dh210.0, 21K at Dh200.25 and 18K at Dh171.75.

Gold prices recovered on Wednesday from their lowest level since May 19 as investors looked towards safe-haven bullion amid broadening inflationary pressures.

Gold defied expectations overnight, shrugging off slightly firmer US yields and a higher US dollar to record a 0.50 per cent gain to $1,846.65 an ounce.

Naeem Aslam, chief market analyst at Ava Trade, said gold prices are trading flat today after scoring decent gains yesterday.

“When it comes to the shining metal, it is mainly about the dollar index. Today is an important day as we are going to get the ADP economic number which is highly likely to bring wild swings for the yellow metal. Remember, the US Federal Reserve’s monetary policy is very much dependent on two things: inflation and economic activity. If the economic data shows weakness, i.e., the US ADP number fails to impress Wall Street, we are likely to see gold prices moving higher as traders will think that the Fed cannot maintain its hawkish stance,” he said.

Jeffrey Halley, senior market analyst at Oanda, said overall, gold remains confined to a $1,830 to $1,870 range, and one could argue a $1,840 to $1,860 an ounce range.

“Gold’s inability to rally on recent US dollar weakness remains a primary concern,” added Halley.

waheedabbas@khaleejtimes.com

A Staff Reporter

Published: Thu 2 Jun 2022, 9:24 AM

Last updated: Thu 2 Jun 2022, 10:13 AM

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