UAE: Gold prices slip in early morning trade
They hit a two-week low in the previous session in the global markets
Gold prices fell in the UAE on Thursday morning after they hit a two-week low in the previous session in the global markets.
Globally, spot gold was nearly stable at $1,764.04 per ounce, down 0.05 per cent as of 9.20am UAE time.
In the UAE, the 24K gold price fell to Dh213.5 per gram at the opening of the markets on Thursday as compared to Wednesday’s close of Dh214.25. While 22K, 21K and 18K opened lower at Dh200.5, Dh191.5 and Dh164.0 per gram, respectively.
Edward Moya, a senior market analyst at Oanda, said gold’s selloff might be overdone as prices are not crumbling despite a surge in global bond yields.
“UK inflation hit a 40-year high and US retail sales confirm the economy is still holding up, which could pave the way for more aggressive rate hikes by the Fed. Gold is now comfortably below the $1,800 level and vulnerable to further selling if market participants become convinced that a couple of more aggressive rate hikes could be on the cards,” he said.
Moya added that the precious metal will likely trade in a range for the rest of the summer as the Fed will likely maintain a data-dependent stance with the Minutes and at next week’s Jackson Hole Symposium.
In their July meeting minutes released on Wednesday, Fed officials said the pace of future rate hikes would depend on incoming economic data, as well as assessments of how the economy was adapting to the higher rates already approved.