Gold prices in Dubai rebounded on Thursday morning, gaining Dh4 as lower oil prices and easing expectations of a US interest rate hike supported bullion.
The 24K variant was trading at Dh503.75 per gram at the market open on Thursday, up from Dh499.75 at the close of the markets on Wednesday.
The other variants of the yellow metal, 22K, 21K, 18K, and 14K, were trading higher at Dh466.5, Dh447.25, Dh383.25, and Dh299 per gram, respectively.
Globally, spot gold was trading at $4,180 per once, up 0.6 per cent as of 9:02am UAE time. Silver was up 1.59 per cent, trading at $61.2 per ounce.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Financial analyst and CIO of Century Financial, Vijay Valecha, said gold had rebounded from a key technical support level.
He added the easing of oil prices came as crude exports from the region recovered to about 80 per cent of pre-war levels. However, persistent inflation concerns and the possibility of further interest rate hikes continue to pose risks to gold.
“Investors have dialled back the probability of an October rate hike to nearly 50 per cent, compared with previous estimates of 70 per cent,” Valecha said, following comments from New York Fed President John Williams suggesting that one further rate adjustment may be sufficient later this year.
Valecha also pointed to rising US Treasury yields as a risk to gold’s recovery, with the 30-year yield climbing above 5.61 per cent, its highest level since 2002.
He said upcoming US economic data, including the core personal consumption expenditures (PCE) price index and non-farm payrolls report, would be key to gold’s near-term direction. Gold could retest support around $4,120 before making further gains, he added.
Source: Khaleej Times