Gold prices remain steady as consumers look for direction

US consumer price data to determine safe-haven asset's value in the short-term

  
Gold bars and coins are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019.

Gold bars and coins are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019.

REUTERS/Michael Dalder
 

Gold prices were steady on Tuesday morning, as investors awaited US consumer price data for direction.

Spot gold was unchanged at $1,835.81 per ounce by 9.15am UAE time after it hit a three-month high of $1,845.06 on Monday.

In the UAE, Dubai Gold and Jewellery Group data showed gold prices rising on Tuesday morning, with 24K gold opening at Dh222.50 per gram as against Dh222 on Monday morning.

Similarly, the other variants of the precious yellow metal also opened higher as 22K, 21K, and 18K were trading at Dh209, Dh199.25, and Dh170.75 per gram, respectively.

Besides, the weaker US dollar and decline in US Treasury yields also supported the safe-haven asset on Tuesday morning.

“Although gold extended higher earlier on Tuesday, it’s struggling to continue building momentum and part of that is concern about inflation… It isn’t a given that those job numbers mean that the US Federal Reserve won’t act,” said Ilya Spivak, a currency strategist at DailyFX.

He said there is significant resistance for gold within the $1,855-$1,875 area, while support is around the $1,800 level.

Ipek Ozkardeskaya, a senior analyst at Swissquote, said gold bulls have all cards in hand to make a successful attempt to reach the $1850-52 level.

 

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