Dubai: Early trade saw a surge in gold prices of over Dh2 per gramme.

Dubai: Early trade saw a surge in gold prices of over Dh2 per gramme.

For hints on the trajectory of the Federal Reserve’s rate hikes, everyone is waiting for the US consumer price index (CPI) data, which is due at 4:30 PM UAE time.

While investors anxiously await crucial US inflation data for clues as to how near interest rates are to peaking, gold prices rose on Wednesday.

Spot gold was up 0.7% at $2,018.93 per ounce as of 9.30 AM UAE time. US gold futures increased 0.7% to $2,032.40.

On Wednesday morning, the price of 24K gold in the UAE increased by more than two dirhams to Dh244.75 per gramme, up from previous night’s close of Dh242.5 per gramme. While the prices for 22K, 21K, and 18K were Dh226.5, Dh219.25, and Dh188.0 per gramme, respectively.

According to Matt Simpson, senior market analyst at City Index, gold may continue to drift upward “as early birds lay their bets on a light inflation report.”

For hints on the Federal Reserve’s rate hike trajectory, everyone is waiting for the US consumer price index (CPI) data, which is due at 4.30 pm UAE time.

According to Matt Simpson, senior market analyst at City Index, gold may continue to drift upward “as early birds lay their bets on a light inflation report.”

With the inverted yield curve, discussions of lacklustre growth, and rise in geopolitical concerns throughout portions of Asia, he added, a modest inflation print may propel gold prices beyond $2,032 to establish a new year-to-date high.

A weakened US currency and returning investment flows, according to ANZ, have kept precious metal prices stable.

 

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