Classifieds powered by Gulf News

UAE gold rates inch up on softer dollar

Prices could go up again soon as the newly appointed chair of US Federal Reserve delivers his testimony

Image Credit: Ahmed Ramzan/ Gulf News Archive
Tourists gather at Dubai's gold souk.

Dubai: Gold jewellery prices in the UAE have inched up slightly on the back of a softer US dollar and as the market awaits the testimony of the newly appointed chair of the US Federal Reserve.

The price of 24-karat gold stood at Dh161 per gram as of 3.50pm on Tuesday, up by .25 fils from Sunday. Retail rates for 22K, 21K and 18K also rose to Dh151.50, Dh144.75 and Dh124 per gram, respectively.

Devesh Mamtani, head of investments and advisory for financial markets at Century Financial, said the precious metal is partly enjoying support from a weaker American currency.

“Backed by the softer greenback, gold prices traded higher for two consecutive sessions,” Mamtani told Gulf News.

Investors are anticipating the new Fed chief Jerome Powell’s testimony on the economic outlook and recent monetary policy actions before the joint economic committee.

Powell is expected to speak at 5.30pm UAE time on Tuesday. It will be his first congressional testimony as the head of the Fed.

“The second half of the testimony, i.e. the question and answer round following the statement, is where markets are expected to be very volatile. There is a high probability of Powell playing pally to the Central Bank’s gradual rate hike scenario. This may further support gold prices, as historically, US dollar has always been weaker before a perceived interest rate hike,” explained Mamtani.

Gold Rate: To keep up to date with gold prices, go to our gold rate page.

Currency Rate: To keep up to date with latest exchange rates, go to our currencies page.