UAE: Gold prices steady after falling Dh2.75 per gram – News
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Photo: AFP
Gold prices in the United Arab Emirates were steady on Thursday morning after falling Dh2.75 per gram to a two-week low on Wednesday night.
Data from Dubai Jewelery Group showed transactions of Dh24,000 to Dh247.5 on Thursday morning, compared with Dh250 at the opening of markets on Wednesday. Meanwhile, the $22,000, $21,000 and $18,000 variants of the yellow metal were trading at Dh229.25, Dh221.75 and Dh190.0 per gram respectively.
Spot gold fell slightly to $2,042.99 an ounce on Thursday morning. The yellow metal fell to a nearly two-week low on Wednesday as the dollar strengthened.
Rania Gule, market analyst at XS.com, said gold turned bearish amid a cautious market and faces selling pressure as investors reassess their expectations for a Federal Reserve interest rate cut in March.
He added that the lack of crucial information on interest rate cuts by Federal Reserve officials in the FOMC meeting minutes weakened gold’s appeal in the near term, supporting the strength of the US dollar and the Treasury bond yields.
“I think the lower chances of a short-term interest rate cut may weaken gold’s appeal in the near term, particularly after Federal Reserve Chairman Jerome Powell stated in the recent monetary policy statement that interest rate cuts will be a topic of future discussion, leading to market mood swings and high volatility.”
Vijay Valecha, chief investment officer at Century Financial, said that from a technical point of view, the recent reversal near the all-time closing high, roughly in the $2,077-$2,078 range, and the subsequent drop should prompt caution among traders. bullish.
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