Gold prices rose at the opening of the markets in the UAE on Wednesday.
According to Dubai Jewellery Group data, the 24K variant of the precious metal was trading at Dh261.25 per gram on Wednesday morning as compared to last night’s close of Dh260.5 per gram, up by Dh0.75 per gram. Among the other variants, the 22K opened higher at Dh241.75, 21K at Dh234.0 and 18K at Dh200.75.
Globally, spot gold was steady at $2,157.31 per ounce at 9.27 am UAE time.
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Gold was stuck in a tight range ahead of the US Federal Reserve decision about interest rates and remarks of Fed chairman Jerome Power later today.
Vijay Valecha, chief investment officer, Century Financial, said expectations of sustained higher interest rates from the Fed limited the upside potential for gold, with elevated Treasury yields acting as a deterrent.
“The metal surged to record highs last week near $2,200 but swiftly consolidated and settled near $2,150 after CPI and PPI data both came above expectations. Investors appear to have adopted a cautious approach ahead of the Fed decision on Wednesday. Traders should be prepared for high volatility this week,” he said.
From a technical standpoint, Valecha said any additional decline may find support around the $2,145.
“Below this level, gold prices could accelerate their descent toward the next relevant support near $2,128. The corrective movement may extend towards the significant $2,100 mark. Conversely, the $2,175 has emerged as a strong immediate barrier. If breached, it could pave the way for gold prices to challenge the previous record peak near the $2,195 area reached last week,” he added.