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24K opened slightly lower at Dh216.75 per gram compared to last night’s close of Dh217.0 per gram
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Gold prices edged lower on Tuesday as a stronger U.S. dollar and expectations of further Fed rate hikes sapped the appeal of non-yielding bullion.
Spot gold fell 0.1% to $1,784.98 an ounce.
In the UAE, 24-carat gold prices edged down to Dh216.75 a gram at the open, compared to last night’s close of Dh217.0 a gram. 22K, 21K and 18K opened at Dh200.75, Dh194.25 and Dh166.5 per gram respectively.
Federal Reserve Chairman Jerome Powell said last week that the central bank will raise interest rates further next year to curb inflation. This was also emphasized by other major central banks.
Naeem Aslam, chief market analyst at AVA Trade, said gold prices are currently mostly consolidating as traders are uncertain about the future direction of the U.S. dollar index.
“There is no doubt that the strength of the U.S. dollar index has triggered some selling in the precious metals, but as the precious metal continues to trade around the important resistance level of 1,800, traders still seem to want to support the price of the precious metal. For gold prices to move higher, what we need to see is the central bank China’s monetary policy stance is less hawkish. But listening to the comments from the Fed and the ECB, it’s reasonable to say that neither central bank wants to give any false hope to a dovish monetary policy,” he said.
The central bank’s overly hawkish monetary policy stance is also making traders nervous, Aslam added.
“Looking at the price level, it’s more of a resistance at 1800. The price breaks this level and maintains momentum above this price point, and the possibility of further bulls taking control of the price may be more likely,” he concluded.
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