ALBAWABA — Gold prices fell on Friday as the prospect of continued interest rate hikes by the United States Federal Reserve dents gold’s appeal and stronger dollar.
On the international market, spot gold was down 0.21 percent at $1,862.20 a troy ounce, at 1pm UAE time. A stronger greenback makes dollar-priced gold more expensive for buyers holding other currencies.
The precious metal prices fell in the United Arab Emirates in line with global rates on Friday.
The Dubai Jewelry Group data showed 24K gold price opening at 224.50 dirhams per gram as compared to yesterday’s closing at Dh228.75 per gram but went back up slightly to Dh225.75 in the afternoon session.
Similarly, 22K, 21K and 18K also opened lower at Dh208, Dh201.25 and Dh172.50 per gram, respectively but also rose to Dh209, Dh202.25 and 173.25 respectively in the afternoon session.
According to the World Gold Council, 2022 industry data showed gold demand hit its highest level since 2011, boosted by soaring purchases from central banks and other investors seeking shelter from rising inflation, fueled in part by Russia’s invasion of Ukraine.
The WGC said demand for the precious metal, traditionally a haven investment in times of economic and geopolitical turmoil, rose to 4,740.7 tons from 4,021.3 tons in 2021.
"Gold is very much... a long-term store of value and the fact is it performs well in a time of crisis," WGC analyst Louise Street, told Agence France-Presse.
"If you consider what's been happening in the backdrop of 2022, with geopolitics and rising inflation, those remain important drivers of demand."
