Gold prices edged up on Thursday, in the UAE and globally, helped by a softer dollar in holiday-thinned trading – but prices moved in a tight range as market participants awaited economic data for further direction.
Spot gold rose 0.27 per cent to $1,819.96 per ounce as of 9.25 am UAE time.
In the UAE, the 24K gold price inched up to Dh220.5 per gram at the opening of the markets on Thursday. Meanwhile, 22K, 21K and 18K opened at Dh204.25, Dh197.5 and Dh169.25 per gram, respectively.
The dollar index was down 0.2 per cent, making gold cheaper for holders of other currencies.
“Gold is holding a range as trading is fairly thin and investors are in wait-and-see mode. The PCE (personal consumption expenditure) data will be important; if inflation continues to come down, the dollar will further weaken and gold will get a steadier tone,” Edward Meir, an analyst with ED&F Man Capital Markets, told Reuters.
Gold has risen about $200 since falling to a more than two-year low in late September, as expectations around slower rate hikes from the Fed dimmed the dollar’s charm.
The Federal Reserve lowered its pace of rate hikes gradually to 50 bps in December after four straight 75 bps rate hikes. However, Fed Chair Jerome Powell has signalled that the US central bank will deliver more rate hikes next year.
United Arab Emirates Dirham Exchange Rate
