UAE: Gold prices open higher in Dubai in early trade

Investors were waiting for economic data from China, the US and Federal Reserve Chairman Jerome Powell’s speech to know how interest rates would pan out

Gold prices opened higher by half a dirham per gram in the UAE on Tuesday morning in line with the global rates.

The Dubai Jewellery Group data showed 24K trading at Dh233.5 per gram on Tuesday as against last night at Dh233.0 per gram.

Meanwhile 22K, 21K and 18K opened at Dh216.25, Dh209.25 and Dh179.5 per gram, respectively.

Global spot gold rose 0.34 per cent to $1,929.04 per ounce by 9.25 am UAE time.

Investors were waiting for economic data from China, the US and the Federal Reserve Chairman Jerome Powell’s speech to know how interest rates would pan out.

Naeem Aslam, chief investment officer, Zaye Capital Markets, said the main focus for traders on gold prices is the US consumer confidence data and the Fed Chairman’s speech on Wednesday.

“It is pretty clear that the Fed Chairman is likely to send the market the very same signal that he has been sending, which is that there is more than one interest rate hike on the table for this year,” said Aslam.

In terms of price, he said, the most important level that everyone is looking at is $1,900. “The bulls are hoping that the price will continue to remain above this price point. If the price fails to reach this support level, then it is likely that we will see the price moving towards the $1,850 mark,” he said.