ALBAWABA — Gold prices rose on Friday, as traders take into account the United States Federal Reserve's hawkish position on rate hikes.
On the international market, spot gold, continuing its weekly climb, was up 0.67 percent at $1,936.80 a troy ounce, at 10:27am UAE time.
The precious metal prices rose in the United Arab Emirates in line with global rates on Friday morning.
The Dubai Jewelry Group data showed 24K gold price opening at Dh233 per gram as compared to yesterday’s opening at Dh231.75 per gram.
Similarly, 22K, 21K and 18K also opened higher at Dh215.75, Dh209 and Dh179 per gram, respectively.
Gold prices hovered at a nine-month high on Friday, heading for a fifth consecutive week of gains amid resurgent safe haven demand and growing uncertainty over the path of United States Federal Reserve monetary policy.
Prices surged nearly 1.5 percent in the prior session, rallying in unison with a sharp drop in stock markets as weak corporate earnings and lower than expected economic data raised concerns over a looming global economic slowdown, additionally weighed down by hawkish comments from the U.S. Federal Reserve, effectively setting the stage for a gold rally.
“Gold is bid above the $1,900 level, and the positive pressure is supported by lower U.S. yields — which decrease the opportunity cost of holding the non-interest-bearing yellow metal, and the softer U.S. dollar,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a video note, posted on the bank's website.
