UAE: Gold prices rise in Dubai in early trade

UAE: Gold prices rise in Dubai in early trade

Traders see light at the end of the Fed rate hiking tunnel

Published: Thu 16 Jun 2022, 9:43 AM

Gold was flat on Thursday morning in the global markets but the yellow metal’s prices rose at the opening of the market in the UAE.

The precious metal jumped in the previous session on falling Treasury yields and a weaker dollar, which were driven lower by a large but widely expected interest rate hike announcement from the US Federal Reserve.

Spot gold was trading at $1,831.37 per ounce at 9.10 am UAE time.

In the UAE, the 24K price rose one dirham per gram at the opening of the market.

The Dubai Gold and Jewellery Group data showed 24K trading at Dh222.0 per gram as compared to Wednesday’s close of Dh221.0 per gram. While 22K, 21K and 18K opened at Dh208.5, Dh199.0 and Dh170.5 per gram, respectively.

On Wednesday, the Fed raised its target interest rate by 0.75 per cent to rein in inflation.

Edward Moya, senior market analyst at Oanda, said gold prices rebounded as some traders are seeing light at the end of the Fed rate hiking tunnel.

“Aggressive rate hikes over the next couple of Fed meetings suggest we could be close to seeing a peak with