Gold prices steady on first trading day of the week

Gold prices were steady on Monday morning as mixed economic data prompted investors to reassess the US Federal Reserve’s rate hike trajectory and boosted the dollar.

Spot gold was up 0.09 per cent at $2,004.58 per ounce as of 9.10 am UAE time. In the UAE, the precious metal prices were unchanged at the opening of the markets on Monday.

According to Dubai Jewellery Group data, the 24K was trading at Dh242.75 per gram, while 22K, 21K and 18K opened at Dh224.75, Dh217.5 and Dh186.5 per gram, respectively.

Gold is likely to trade with “positive bias but can see some initial correction”, although a “major downfall” in prices is not expected as uncertain global economic and geopolitical tensions support its safe haven status, said Hareesh V, head of commodity research at Geojit Financial Services.

“Gold also maintains a strong correlation with real yields, and price action continues to be sensitive to US inflation and employment data,” Standard Chartered analyst Suki Cooper said in a note.

Gold dropped two per cent on Friday after data showed US core retail sales slipped 0.3 per cent last month, but gains in January and February put consumer spending on track to accelerate in the first quarter.

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