Khaleej Times, Monday, Feb 27, 2023 | Sha'ban 07, 1444
UAE: Gold prices steady in Dubai in early trade
Emirates:
Gold prices were flat in Dubai on Monday morning and hovered near a two-month
low.
According to the Dubai Jewellery Group, 24K opened unchanged at Dh219.25 per
gram, while 22K, 21K and 18K were trading at Dh203.0, Dh196.5 and Dh168.25 per
gram at the opening of the markets on Monday.
Globally, spot gold was unchanged at $1,810.48 per ounce.
Analysts said strong US economic data stoked fears that the Federal Reserve
would implement more interest rate hikes to rein in inflation.
Data on Friday showed consumer spending shot up 1.8 per cent last month – the
largest increase since March 2021. The personal consumption expenditures (PCE)
price index, the Fed's preferred inflation measure, rose 0.6 per cent last
month, after gaining 0.2 per cent in December.
"A two-year high consumer spending coupled with robust job numbers released
earlier this month would give confidence to the Fed to boost rates to tackle
inflation," said Hareesh V, head of commodity research at Geojit Financial
Services.
"This may adversely affect the appeal of gold," which pays no interest, he told
Reuters.
US Treasury Secretary Janet Yellen said on Saturday that new data showing
inflation jumped unexpectedly in January signals the fight against inflation "is not a straight line" and more work is needed.