[ad_1]
The dollar index edged higher in early Asian trade, rebounding from its lowest level since Oct. 6
Photo: Associated Press file
Gold prices edged lower Wednesday morning as the U.S. dollar stabilized, while the Federal Reserve’s pledge to tighten monetary policy also dampened the appeal of zero-yielding gold.
Spot gold was down 0.1% at $1,650.75 an ounce.
In the United Arab Emirates, 24-karat gold fell by half the dirham to 199.5 dirhams per gram when the market opened on Wednesday morning. While 22K, 21K and 18K were traded at Dh187.5, Dh178.75 and Dh153.25 per gram, respectively.
The U.S. dollar index edged higher in early Asian trade, recovering from its lowest level since Oct. 6.
Minneapolis Fed President Neil Kashkari said on Tuesday that the central bank may need to push its benchmark policy rate above 4.75% if underlying inflation doesn’t stop rising.
Edward Moya, senior market analyst at Oanda, said it took a lot of work to get investors interested in buying bullion.
“Gold continues to weigh heavily despite the easing in the bond market sell-off. Earnings season has prompted some investors to return to equities, which means demand for safe-haven assets is low. The current market environment remains unfavorable for gold as Wall Street is convinced the Fed is Rate hikes will need to continue in the spring,” he said.
waheedabbas@khaleejtimes.com
Also read:
[ad_2]
Source link