The dollar index rose 0.4%, making dollar-priced bullion more expensive for buyers holding other currencies
Photo: AP file
Gold prices were flat on Monday morning as the dollar strengthened on safe-haven demand sparked by protests in several Chinese cities over the country’s tough Covid-19 restrictions.
Spot gold was trading nearly unchanged at $1,750.35 an ounce as of 9:30 a.m. UAE time.
In the United Arab Emirates, 24K was trading at Dh212.25 per gram when markets opened on the first day of the week. While 22K, 21K and 18K were trading at Dh199.25, Dh190.25 and Dh163.0 per gram, respectively.
The dollar index rose 0.4%, making dollar-priced bullion more expensive for buyers holding other currencies.
“Gold prices are closely tracking movements in the U.S. dollar, and heightened uncertainty from growing unrest in China appears to be supporting the dollar this morning,” Yeap Jun Rong, market strategist at IG, told Reuters.
People may turn to defensive assets given the Covid situation in China, but the dollar’s gains are currently eclipsing gold’s safe-haven status, Yeap said.
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