UAE: Early trading sees gold prices rise.

With all eyes on the US Federal Reserve meeting next week, gold prices started the day Wednesday in the UAE higher.

Dubai Jewellery Week reports that the 24K was trading at Dh238.0 per gram as opposed to its opening price of Dh237.5 per gram yesterday. The price per gram for 22K, 21K, and 18K was Dh220.25, Dh213.25 and Dh182.75 respectively.

In the morning, the spot price of gold remained hardly changed at $1,963.57 per ounce.

According to Vijay Valecha, chief investment officer at Century Financial, the Fed’s decision would be extremely dependent on the incoming economic statistics from the US due to their data-driven posture.

“Investors will be watching the US May CPI report and the FOMC meeting next week. According to a study by the Institute for Supply Management, the US services sector barely expanded in May as new orders slowed. This may have contributed to a three-year low in a gauge of input costs paid by businesses, which might help the Fed battle inflation. As the opportunity cost of owning the non-yielding asset decreases, lower interest rates tend to boost gold, according to Valecha.

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