UAE: Gold prices slip as investors see bigger US rate hikes
UAE: Gold prices slip as investors see bigger US rate hikes.
Dubai, TGO: Gold prices slipped on Tuesday morning as the dollar stayed strong on rising prospects of more Russian sanctions, and bigger interest-rate hikes by the Federal Reserve to rein in inflation.
Spot gold was down 0.2 per cent at $1,927.65 per ounce at 9.10 am UAE time. In the UAE, 24K opened at Dh233.75 per gram on Tuesday morning. While 22K, 21K and 18K were trading at Dh219.5, Dh209.5 and Dh179.5 per gram, respectively.
The US and Europe were planning new sanctions on Moscow for the attack on Ukraine. Jeffrey Halley, senior market analyst at Oanda, said despite the gains overnight, gold remains stuck in a roughly $1,915 to $1,950 an ounce range, with no signs of a directional breakout yet either way.
“The risks are still skewed to the downside for gold, especially if US yields and the US dollar keep climbing. Only a rally through $1,970 changes that outlook temporarily. Gold has resistance at $1,940 and $1,950 an ounce. Meanwhile, a sustained break of the $1,880 region will probably trigger a capitulation trade, potentially pushing gold down to $1,800 an ounce,” said Halley.
