(MENAFN- Khaleej Times)
Gold prices inched higher on Tuesday morning after falling more than one per cent in the previous session.
Spot gold was up 0.15 per cent at $1,781.1 per ounce at 9.25 am UAE time.
In the UAE, the 24K gold price rose half a dirham to Dh215.75 per gram at the opening of the markets on Tuesday. While 22K, 21K and 18K were trading at Dh202.75, Dh193.5 and Dh165.75 per gram, respectively.
Vijay Valecha, chief investment officer at Century Financial, said gold traders will also have to monitor the dynamics of US Treasury markets.
“The yield of two-year Treasuries has stabilised near 3.25 per cent and is trying to gain additional upside momentum. In case, if it manages to settle above 3.30 per cent, it will have a good chance to get to the test of the yearly highs near 3.45 per cent, which could make gold weaker,” added Valecha.
He sees gold facing resistance at $1,802 and $1,822, while wupport at $1,755 and $1,726.
David Song, strategist at dailyFX, said it remains to be seen if the Federal Open Market Committee (FOMC) Minutes will influence the price of gold as the slowdown in the US Consumer Price Index (CPI) dampens bets for another 75bp rate hike, but hints of a looming shift in the Fed's approach for combating inflation may prop up the precious metal as the central bank appears to be on track to wind down its hiking-cycle over the coming months.
ALSO READ:
- UAE: Gold prices drop, further Fed rate hike expectations weigh on yellow metal
- US: Fed's Daly is open to 75 bps hike in September, sees no 'hump' in rate path
MENAFN16082022000049011007ID1104702966
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.