Gold prices hold steady, 24k priced at Dh150.75 in Dubai


Gold traded within a range on Wednesday after hitting the lowest in nearly five months in the previous session, with investors in a holding pattern ahead of the outcome of a two-day meeting of the U.S. Federal Reserve.

Spot gold was steady at $1,243.78 an ounce at 0427 GMT, after marking its lowest since July 20 at $1,235.92 in the previous session.

Dubai gold prices are at Dh150.75 for 24-karat and 22-karat can be bought for Dh141.50

US gold futures were up 0.3 percent at $1,245.60.

US stock futures, Treasury yields and the dollar fell on Wednesday as Democrat Doug Jones beat Republican Roy Moore in a bitter U.S. Senate race in Alabama, dealing a political blow to Trump in a race marked by accusations of sexual misconduct against Moore.

The win by Jones could be bullish for gold and bearish for the dollar, a Hong Kong-based trader said, adding that the recent dollar strength could yield some profit taking, in turn helping gold.

“It’s (gold) just consolidating here at the moment until the Federal Open Market Committee statement is out. We’re expecting a rate hike,” the trader said.

The inflation data had helped lift the dollar to a four-week high on Tuesday, while gold dropped to its nearly five-month low, he said.

The US Fed has raised benchmark interest rates two times so far this year and analysts say a third hike is almost certain, by 25 basis points to between 1.25 and 1.50 percent, at the conclusion of its meeting later on Wednesday.

 Markets will also be focused on the US central bank’s statement for clues on any further rate increases in 2018.

Gold is highly sensitive to rising US rates as these increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.

Spot gold may bounce to a resistance at $1,250 per ounce before falling again, as it has stabilised around a support at $1,239, Reuters technicals analyst Wang Tao said.

In other precious metals, silver was down 0.1 percent at $15.71 an ounce, trading near a five-month low of $15.61 hit overnight

Platinum rose 0.2 percent to $878.20 an ounce, after touching its lowest since February 2016 at $868.80 in the previous session.

Palladium was trading down 0.2 percent at $1,010.50 an ounce.

 

 

Source www.khaleejtimes.com

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