A slew of macro data this week could boost the dollar and yields, pushing gold higher, analysts say
Gold prices in the UAE opened higher on the first session of the week amid a weaker dollar.
According to Dubai Jewelry Group, 24K traded at AED 233.25 per gram on Monday morning, compared with last week’s close of AED 232.5 per gram. Meanwhile, 22K, 21K and 18K also opened higher at Dh216.0, Dh209.0 and Dh179.25 per gram, respectively.
Spot gold rose 0.2% to $1,925.78 an ounce in early trade as investors weighed in on the prospect of further rate hikes by the Federal Reserve.
Zain Vawda, analyst at dailyFX, said that there is quite a lot of macro data this week that could push the dollar and yields, and thus gold prices.
“Durable goods orders and consumer confidence data will be released at the start of the week, and then all eyes will turn to the Federal Reserve’s bank stress test results on Wednesday. Market participants will no doubt be interested in seeing the worst of the worst after the turmoil in the U.S. banking sector Has it really passed.
Rising rate hike expectations and continued hawkish comments from the Federal Reserve could be positive for the dollar and drag gold prices lower, while heightened recession fears could support gold prices as safe-haven assets get a boost. Its gestures are subtle,” he said.