Gold prices open higher in Dubai on first trading day of the week

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Gold prices opened higher in the UAE on the first trading day of the week due to weakness in the US dollar.

According to Dubai Jewellery Group data, the 24K was trading at Dh233.25 per gram on Monday morning as compared to last week’s close of Dh232.5 per gram. Meanwhile, 22K, 21K and 18K also opened higher at Dh216.0, Dh209.0 and Dh179.25 per gram, respectively.

Spot gold rose 0.2 per cent to $1,925.78 per ounce in early trade as investors were anticipating prospects of further interest rate hikes by the US Federal Reserve.

Zain Vawda, Analyst, dailyFX, said this week there is quite a bit of macro data that could drive the US dollar and yields and thus Gold prices.

“The early part of the week will bring the Durable Goods Orders and consumer confidence data before all eyes turn to the Federal Reserve's release of the Bank Stress Test results on Wednesday. Following the US banking turmoil market participants will no doubt be interested to see if the worst is well and truly behind us.

Rising rate hike expectations and ongoing hawkish Fed speak could prove beneficial to the US dollar and drag gold prices lower while heightened recessionary fears could support gold prices as safe havens get a boost. It is delicately poised,” he said.