On Tuesday, the gold prices decreased in the UAE and globally, weighed down by a stronger dollar and hawkish remarks by some Federal Reserve members, while the investors kept their eyes on the US debt ceiling Saga.
Till 9.45 am UAE time, spot gold cleared from 0.47 percent to $1,960.47 per ounce.
In the UAE, 24K was dealing at Dh238.0 per gram in the markets opening on Tuesday, while down to Dh0.75 per gram from last night’s close of the markets. Meanwhile, 22k, 21K, and 18K were dealing at Dh220.25, Dh213.25, and Dh182.75 per gram.
Michael Langford, director at corporate advisory firm AirGuide told Reuters, ” The market typically gets tired of debt ceiling posturing. While initial uncertainty helps gold, the strengthening of the dollar indicates that the market believes a a settlement will be reached”.
US President Joe Biden and House Speaker Kevin McCarthy could not reach an argument on Monday about how to raise the US government’s $31.4 trillion debt ceiling with just 10 days before a possible default that could fall the economy but pledged to keep talking.
St. Louis Fed President James Bullard said by keeping gold under pressure. There is a need to go higher on the policy rate. Rising rates hurt demand for the zero-yielding asset.
However, Air Guide’s Langford said that key risks for gold appear to be decreasing as Fed Chairman Jerome Powell gave a sign that it may be to pause rate rises.
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