Dubai: Gold slipped further to Dh6,650.04 per troy ounce during the 9am opening on Wednesday (January 19, 2022), from Dh6679.40 per troy ounce close on Tuesday.
In the world market, gold prices have been on a downward slide this week, as the dollar and US Treasury yields strengthened with investors turning their attention to next week's Federal Reserve policy meeting for more signals on its rate hike timeline.
Gold rates had seen a downward slide as the prospect of aggressive rate hikes by the US Federal Reserve sent benchmark Treasury yields to two-year highs, reducing the appeal of the yellow metal.
In the UAE, the price of gold dropped Dh1 per gram on Wednesday for 22- and 24-carat variants, and Dh0.75 for 21- and 18-carat pieces on Wednesday morning compared to Tuesday’s close.
The Dubai Gold and Jewellery Group data showed 24 carats opening at Dh219.25 per gram on Wednesday, down from the previous day’s close of Dh220.25.
Meanwhile, 22 carats opened at Dh206 per gram; 21-carat gold opened at Dh196.75 (from Dh 197.50), and 18 carats slid to Dh168.5, from the previous close of Dh169.25.
The US Treasury yields firmed up to two-year highs on hopes of faster interest rate hikes by the Fed.
Benchmark US Treasury yields jumped to two-year highs on Tuesday, as traders prepared for the Federal Reserve to be more aggressive in tackling unabated inflation, ahead of its meeting on January 25-26, 2022.
Analysts expect both gold and silver to remain volatile and continue to hold their support levels.
Gold has support at $1,800-1,788 per troy ounce and resistance at $1,822-1,834 per troy ounce, while silver has support at $23.20-22.88 per troy ounce and resistance at $23.70-24.10 per troy ounce.
