Dubai: Gold prices rise, 24K trades at Dh217 per gram

Spot gold price was trading at $1,790.82 per ounce by 9.10 am UAE time.

Global gold prices were nearly stable on Thursday morning as investors raised the bet that the Federal Reserve would tighten its policy earlier than anticipated following better-than-expected US consumer price data.

Spot gold price was trading at $1,790.82 per ounce by 9.10 am UAE time, down by 0.06 per cent it had hit the highest level since September 16 at $1,795.81 on Wednesday.

In the UAE, gold prices rose on Thursday morning. The Dubai Gold and Jewellery Group data showed 24K trading at Dh217.0 per gram at the opening of the market on Thursday, up from Dh213.5 on Wednesday morning.

Among the other variants of the precious metal, 22K at trading at Dh203.75, 21K at Dh194.5 and 18K at Dh166.75.

“I expect both the US dollar and long-dated rates to resume their climb sooner rather than later and the gold rally will evaporate as quickly as it began,” said Jeffrey Halley, a senior market analyst for Asia-Pacific at OANDA.

“The 100- and 200-day moving averages lie between $1,795.00 and $1,800.00 today, and I believe this zone will present a formidable barrier to further gains,” he told Reuters.

“It’s still the case that we’ll see gold prices trend lower as the Fed tightens policy,” said IG Market analyst Kyle Rodda.

waheedabbas@khaleejtimes.com