UAE: Gold prices steady in Dubai after hitting nearly 3-month low

Expert says yellow metal has softened after hawkish remarks from Fed Chair Jerome Powell, is beginning to look vulnerable to a break below key support

Gold prices were steady in the UAE on Thursday morning after hitting a three-month low on Wednesday.

According to Dubai Jewellery Group data, the 24K was trading at Dh233.75 per gram at the opening of the markets on Thursday as against last night’s close of Dh233.5. While 22K, 21K and 18K were trading at Dh216.25, Dh209.5 and Dh179.5 per gram, respectively.

Spot gold was flat at $1,928.14 per ounce by 9.20 am UAE time as further interest rate hikes are keeping the precious metal under pressure to a nearly three-month low.

Naeem Aslam, chief investment officer, Zaye Capital Markets, said the question that many traders are asking themselves is whether the price is going to continue to move in a down direction.

“The simple answer is that it is likely that we will see more moves to the downside, and it is highly possible that the price may test the level of 1,900 in the coming days,” said Aslam.

Manish Jaradi, strategist, dailyFX, said gold has softened a bit after hawkish remarks from US Federal Reserve Chair Jerome Powell and is beginning to look vulnerable to a break below key support.

“Powell maintained the hawkish stance, saying further rate increases are ‘a pretty good guess’ and that the June pause didn’t imply a pause in the hiking cycle while reiterating the outlook for two more rate hikes before the end of the year,” said Jaradi.