Gold rises as US dollar slides

Published March 3rd, 2023 - 07:25 GMT
Gold up, dollar lower
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ALBAWABA — Gold prices edged up slightly on Friday as the United States dollar eased while investors assessed prospects of further rate hikes by the U.S. Federal Reserve.


On the international market, spot gold was up 0.41 percent at $1,843.40 a troy ounce, at 10:55 a.m. United Arab Emirates time.


The precious metal’s prices also went up in the U.A.E. in line with global rates on Friday.


The Dubai Jewelry Group data showed 24K gold price opening slightly higher at 222.75 dirhams per gram as compared to yesterday’s closing at Dh222 per gram.


Similarly, 22K, 21K and 18K also opened higher at Dh206.25, Dh199.50 and Dh171 per gram, respectively, closing the day before at Dh205.50, Dh199 and 170.50 respectively.


"Near-term challenges remain for gold and other precious metals on further rate hikes," Giovanni Staunovo, UBS commodity analyst, wrote in a note. "The focus of market participants remains on U.S. economic data and how it impacts the monetary policy of the Fed."


Gold is snared in a U.S. dollar-driven regime but continues to find dip buyers as a hedge against a re-inflation of geopolitical risk premium, Stephen Innes, managing partner at SPI Asset Management, told MarketWatch.


"After struggling to digest last year’s steep (interest) rate hikes, financial markets are having to re-price a more hawkish outlook again for 2023," Innes added.


The fact that the precious metal is holding firm, even as exchange-traded funds see small net outflows, "suggests central-bank demand has returned after the New Year price jump", Adrian Ash, director of research at BullionVault, told MarketWatch. "It also highlights solid consumer demand, most especially from China."



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