Gold Steady As Oil Rises, Fed Rate Hike Weighs On Market
The 24K variant of the yellow metal was trading at Dh518.75 per gram at the market open on Tuesday, while 22K, 21K, 18K, and 14K were trading at Dh480.50, Dh460.50, Dh394.75, and Dh308, respectively.
Recommended For YouThe global spot gold price was trading at $4,304 per ounce, down 0.18 per cent. Silver was trading at $63.26 per ounce, down 0.62 per cent.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Vijay Valecha, financial analyst and CIO at Century Financial, said the increase in oil prices was due to the postponement of the planned meeting between Iran and several Gulf nations, with aims to create a temporary shipping lane through the Strait of Hormuz.
The shutdown of the Saudi East-West Pipeline over the weekend has also led to further pressure, he said.“The Middle East crisis has delivered an inflationary jolt to the global economy, with prices of crude, natural gas, and petroleum products, including diesel, rallying,” Valecha explained.
“Even before the assault on the East-West conduit, oil output from the kingdom had been under pressure. Riyadh recently reported to the OPEC cartel that its crude production last month sank to the lowest level since 1990. After US data showed the pace of price gains marched higher in August, the Federal Reserve is widely expected to raise rates this week, a move that would negatively affect gold prices.”
He added,“From a technical standpoint, though, gold is forming a triangle formation on the 4-Hour chart; it must be noted that the metal is facing technical weakness at the $4,310-$4,325 support zone. Looking ahead, a breakdown of the $4,310 level could trigger a bearish move toward $4,225. On the flip side, a bounce from this level could support a bullish stance.”
ALSO READ- Dubai gold prices ease as oil rally fans US rate hike bets UAE gold price today: 24K drops to Dh522 per gram as dollar strengthens Gold price in Dubai rises as traders await US inflation data for Fed rate clues
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.
Comments
No comment