UAE: Gold prices continue to rise in Dubai during new year

UAE: Gold prices continue to rise in Dubai during new year

Gold prices edged higher on Wednesday morning, supported by a pullback in the dollar, although caution prevailed as investors awaited minutes from the Federal Reserve's December policy meeting that could offer hints on the US central bank's tightening path.

Spot gold was up 0.51 per cent at $1,846.44 per ounce as of 9.15 am UAE time.

In the UAE, 24K gold price rose Dh0.75 per gram to trade at Dh223.75 per gram at the opening of the markets on Wednesday.

Meanwhile, 22K, 21K and 18K were trading at Dh207.25, Dh200.5 and Dh172.0 per gram, respectively.

The dollar index slipped 0.2 per cent, after scaling a two-week high on Tuesday. A weaker dollar makes bullion cheaper for other currency holders.

Minutes from the Fed's December 13-14 policy meeting are due at 7pm GMT (11 pm UAE time). The US central bank had raised rates by 50 basis points (bps) in December after four straight hikes of 75 bps each.

"Traders remain cautious ahead of the Fed minutes. The minutes will likely give an idea about the Fed's policy decisions and this will impact the dollar and gold," said Hareesh V, head of commodity research at Geojit Financial Services.

"Ongoing recession concerns and geopolitical tensions are likely to lift