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They hit a two-week low in the previous session on global markets
Gold prices in the UAE fell on Thursday morning after hitting a two-week low on global markets in the previous session.
Globally, spot gold was almost steady at $1,764.04 an ounce, down 0.05% as of 9.20am UAE time.
In the UAE, 24K gold fell to AED213.5 per gram at the open on Thursday, compared with AED214.25 at Wednesday’s close. The opening prices of 22K, 21K and 18K were Dh200.5, Dh191.5 and Dh164.0 per gram respectively.
Edward Moya, senior market analyst at Oanda, said that despite the surge in global bond yields, prices have not collapsed, so the sell-off in gold may have been excessive.
“UK inflation hits a 40-year high and U.S. retail sales confirm the economy is still firming, which could pave the way for more aggressive rate hikes by the Fed. Gold is now comfortably below $1,800, if market participants are convinced there could be a few more aggressive moves rate hikes are vulnerable to further selling,” he said.
The precious metals are likely to trade in a range for the rest of the summer, Moya added, as the Fed is likely to maintain a data-reliant stance in the minutes and next week’s Jackson Hole symposium.
The pace of future rate hikes will depend on upcoming economic data and an assessment of how the economy is adapting to approved rate hikes, Fed officials said in the minutes of their July meeting released on Wednesday.
waheedabbas@khaleejtimes.com
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