UAE: Gold prices inch up in early trade; 24K opens at $59.83 per gram

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Gold prices rose on Thursday morning in the UAE, but the precious metal's outlook was dulled by an aggressive Federal Reserve stance on inflation.

Spot gold was trading at $1,814.68 per ounce at 9.10am UAE time.

In the UAE, the 24K gold price rose half a dirham at the opening of the market on Thursday.

The Dubai Gold and Jewellery Group data showed 24K trading at Dh219.75 per gram, up from Dh219.25 at the close of the market on Wednesday. Meanwhile, 22K, 21K and 18K opened at Dh206.5, Dh197.0 and Dh169.0, respectively.

Despite the US dollar falling heavily overnight, and risk sentiment rising generally, gold prices fell 0.53 per cent on Wednesday.

“When gold falls as the US dollar falls heavily, we should all take that as a warning sign, suggesting lower prices are the path of least resistance. As such, I believe gold’s downside risks have ratcheted higher,” said Jeffrey Halley, senior market analyst at Oanda.

Support lies at $1,789, followed by $1,780 an ounce. Failure of the latter suggests a deeper correction to $1,700. That move could occur quite quickly if $1,780.00 fails. "Gold has resistance at $1,836, followed by the 200-Daily Moving Average at $1,836.80, and then $1,850 an ounce,” said Oanda.