UAE: Gold prices inch up in early trade

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Gold prices inched up on the first trading day of the week as the strength in the dollar has kept the yellow metal in a tight sideways pattern for the past month or so.

Spot gold was trading at $1,842.76 per ounce at 9.30am UAE time, up 0.22 per cent.

In the UAE, 24K was trading at Dh223.25 per gram on Monday morning, up Dh0.25 per gram from last week’s close.

Among the other variants of the yellow metal, 22K opened at Dh209.75 per gram, 21K at Dh200.0 and 18K at Dh171.5.

Naeem Aslam, chief market analyst at Ava Trade, said the precious metal's price action is going to be highly interesting this week as traders will continue to pay attention to the dollar index and the Federal Reserve's monetary policy stance.

“At the same time, many traders will continue to use the precious metal as a hedge against the ongoing uncertainty in the market, and any weakness in the economic data in the US is likely to make traders buy more gold in order to provide an extra -safety net for their portfolios,” he said.

Jeffrey Halley, senior market analyst at Oanda, said despite the noise of the recession in the past week, gold remains anchored in the middle of its one-month range.