UAE: Gold prices inch higher on cooler-than-expected US inflation data

UAE: Gold prices inch higher on cooler-than-expected US inflation data

24K gold was trading at Dh244.50 per gram at the opening of the markets

Published: Thu 13 Apr 2023, 9:38 AM

Gold prices inched higher for a third consecutive session on Thursday, as cooler-than-expected US inflation data spurred bets that the Federal Reserve might raise rates once more next month before pausing hikes.

Spot gold was up 0.1 per cent at $2,017.07 per ounce as of 9.17 am UAE time.

In the UAE, the 24K gold was trading at Dh244.50 per gram at the opening of the markets on Thursday. While 22K, 21K and 18K were trading at Dh226.25, Dh219 and Dh187.75 per gram, respectively.

Gold prices rose more than one per cent on Wednesday after data showed the US Consumer Price Index (CPI) rose 0.1 per cent last month, compared with expectations for a 0.2 per cent increase, after advancing 0.4 per cent in February.

"Expectations that the Fed's hiking cycle may be nearing its end are well-anchored by the recent US CPI data, with lower Treasury yields and a weaker dollar being supportive of gold prices," said Yeap Jun Rong, a market analyst at IG.

Alex Kuptsikevich, a senior market analyst at FxPro, said it appears more like a large buyer building up its long