ALBAWABA — Gold prices gained marginally on Friday as investors take in the United States dollar price pulling back a little and the U.S. Federal Reserve meeting minutes indicating interest rates may stay higher for longer.
The Fed is expected to keep raising its benchmark interest rate over the next few months and to keep it at a peak through 2023 with minutes from its last policy meeting released on Wednesday showing that all 19 Fed officials favor raising rates at the next two meetings.
On the international market, spot gold was up 0.28 percent at $1,832 a troy ounce, at 10:18 a.m. United Arab Emirates time.
The precious metal’s prices were mixed in the U.A.E. on Friday.
The Dubai Jewelry Group data showed 24K gold price remaining stable at 221 dirhams per gram in line with yesterday’s closing at the same price.
Similarly, 22K, 21K also opened ever so slightly higher at Dh204.75 and Dh198.25 respectively, closing the day before at Dh204.50 and Dh198 respectively.
The 18K variation remained stable from closing the day before at Dh169.75 per gram.
“Gold prices are likely to remain inclined on a downward trajectory following the recent hawkish remarks from Fed officials and further advances in the US dollar. Meanwhile, minutes of the Fed’s last meeting indicated that most of the policymakers favor further hikes in borrowing costs in coming months to beat inflation, which suppressed international gold prices during the overnight session,” Market expert Sugandha Sachdeva told Live Mint.
“Markets are now eyeing another reading of the fourth quarter US GDP and Fed’s favored inflation measure-the core personal consumption expenditure index. That will provide further cues about the inflationary trends in the US economy," Sachdeva added.
