ALBAWABA — Gold prices rose on Thursday, as traders took into account the United States Federal Reserve's position on rate hikes.
On the international market, spot gold was up 0.19 percent at $1,910.70 a troy ounce, at 10:21am UAE time.
The precious metal prices dropped slightly in the United Arab Emirates against global rates on Thursday morning.
The Dubai Jewelry Group data showed 24K gold price opening at Dh231.25 per gram as compared to yesterday’s opening at Dh230 per gram.
Similarly, 22K, 21K and 18K also opened higher at Dh214.25, Dh203.25 and Dh177.75 per gram, respectively.
The U.S. Fed officials are sending out mixed signals on whether the Fed will continue with rate hikes or support a slower pace of tightening, as lower interest rates would boost gold’s appeal as they decrease the opportunity cost of holding the non-yielding asset.
Markets still see a 25-bp hike in February and rate cuts from September, and gold is enjoying the perceived less hawkish Fed, Matt Simpson, a senior market analyst at City Index, a global leader in spread betting, CFD and FX trading, told Reuters.
“If gold can hold above $1,895, then prices will hold within the $1,900–$1,920 range, whereas a break below $1,895 signals a retracement against its bullish trend, ahead of a break above $1,930,” Simpson added.
