On Wednesday, the trading in gold prices reached the highest levels after US economic data sparked protection demand and expectations that the Federal Reserve might ease its monetary policy track.
Spot gold increased up to 0.1 per cent at $2023. 49 per ounce at 9.20 am UAE time.
On Tuesday, the price of 24k gold increased by over Dh5 per gram, which closed at Dh245.0 in the UAE. In the meantime, 22k, 21k and 18k were completed at Dh 227.0, Dh219.75 and 188.25 per gram, respectively.
Clifford Bennett, the chief economist at ACY Securities, said, “Gold could continue to split upside, and a slow global economy with high inflation, and with the weakness in the US dollar will allow gold to ” leap higher”.
Naeem Aslam, a chief investment officer of Zaye Capital Markets, said that the precious metal had crossed a price level above $2000, as an essential resistance. Still, at the same time, it is the most important thing to note when it can continue to trade above this price handle.
He further added that economic data is of utmost importance today. The number which can sting the bulls today would be the US ADP number. Hence, ” For now, the weakness in the dollar index and concern is of higher oil prices and their impact on the economy which are very supportive to the present prices, but the traders should accept caution about how much of a neutral message they will hear from the Fed in the coming future”.
