Dubai Gold Prices Steady as Oil Rises and Fed Rate Hike Looms
Gold prices in Dubai remained stable on Tuesday morning as oil prices continued to rise and anticipation of a US Federal Reserve rate hike weighed on the market. The price of 24K gold was trading at Dh518.75 per gram, while 22K, 21K, 18K, and 14K gold were priced at Dh480.50, Dh460.50, Dh394.75, and Dh308 respectively.
The global spot gold price was down 0.18% to $4,304 per ounce, with silver trading at $63.26 per ounce, a 0.62% decrease. According to Vijay Valecha, financial analyst and CIO at Century Financial, the increase in oil prices is due to the postponement of the planned meeting between Iran and several Gulf nations, as well as the shutdown of the Saudi East-West Pipeline over the weekend.
The Middle East crisis has led to higher crude prices, natural gas, and petroleum products, including diesel. Valecha noted that gold prices could be negatively affected by a Federal Reserve rate hike this week, citing technical weakness at the $4,310-$4,325 support zone. A breakdown of the $4,310 level could trigger a bearish move toward $4,225, while a bounce from this level could support a bullish stance.