Gold prices inched lower on Wednesday morning as the dollar steadied, while the US Federal Reserve’s commitment to tightening monetary policy also weighed on zero-yield bullion’s appeal.
Spot gold was down 0.1 per cent at $1,650.75 per ounce.
In the UAE, the 24K gold price fell half a dirham to Dh199.5 per gram at the opening of the markets on Wednesday morning. While 22K, 21K and 18K were trading at Dh187.5, Dh178.75 and Dh153.25 per gram, respectively.
The dollar index was a tad bit higher in early Asian hours, having bounced off its lowest level since October 6.
The US central bank may need to push its benchmark policy rate above 4.75 per cent if underlying inflation does not stop rising, Minneapolis Fed President Neel Kashkari said on Tuesday.
Edward Moya, a senior market analyst at Oanda, said it is going to take a lot to get investors interested in buying bullion.
“Gold prices continue to remain heavy despite a respite in the bond market selloff. Earnings season has driven some investors back into equities, which means demand for safe havens was low. The current market environment is still bearish for gold as Wall Street becomes convinced that the Fed will need to continue rates into the spring,” he said.