Gold prices remain steady, 22k priced at Dh147 in Dubai

Gold prices were little changed on Tuesday, after closing lower in three previous sessions, as investors opted for riskier assets amid increasing prospects of a US interest rate hike following strong economic data.

Dubai gold prices are Dh156.50 for 24-karat and 22-karat can be bought for Dh147.

Spot gold was flat at $1,291.51 per ounce by 0644 GMT.

US gold futures for August delivery were down 0.1 per cent at $1,295.60 per ounce.

“There is lack of interest in gold. It is more interesting for equities and people are making profit there, so nobody wants to trade in gold for the time being,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Wall Street’s three major indexes rose on Monday, pushing the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth.

The dollar index , which measures the greenback against a basket of six major currencies, was up 0.1 percent at 94.067. The US dollar rose to 110 yen , the highest since May 24.

“The recent strength in the US dollar amid positive economic data has kept investor demand (for gold) subdued,” ANZ said in a note.

The stronger-than-expected US jobs data released on Friday, fuelled expectations that the Federal Reserve would raise interest rates at its policy meeting starting on June 12.

Higher interest rates boost the dollar, making dollar-denominated gold more expensive for buyers using other currencies, and they reduce investor interest in non-yielding bullion.

“Gold prices are moving in a very tight range. The upside will be between $1,297-$1,298 as the market seems to be waiting for US and North Korean leaders to meet and for the U.S. interest rates to go up, which is all happening next week,” Leung added.

Spot gold is still targeting the May 21 low of $1,281.76 per ounce, as its bounce from this level has completed, according to Reuters technical analyst Wang Tao.

North Korean leader Kim Jong Un is preparing for a high-stakes summit with US President Donald Trump in Singapore on June 12.

Meanwhile, concerns about global trade lingered following United States imposing metal tariffs on Mexico, Canada and the European Union last week.

“The tariff picture continues to remain quite unsettled, but somewhat surprisingly, is not causing much angst for the various markets … For now, we remain in a wait-and-see mode on gold, as investors mull which way to take the complex,” INTL FCStone analyst Edward Meir said in a note.

In other precious markets, silver rose 0.1 percent to $16.38 an ounce.

Platinum fell 0.5 per cent at $896 an ounce. It earlier hit a low of $891.25, the lowest since May 21.

Palladium was 0.7 per cent lower at $986.47 per ounce. The metal rose to a six-week high of $1,010.50 in the previous session.

Courtesy: Khaleej Times/ Image: cherishgold.com