San Francisco Fed President Mary Daly said the real impact of U.S. interest rate hikes is likely greater than her near-term rate target implies
Photo: Reuters file
Gold prices rose slightly on Tuesday morning, after falling 1% in the last session, as the dollar calmed, with attention turning to the minutes of the last meeting of the United States Federal Reserve for clues about future rate hikes.
Spot gold rose 0.37% to $1,744.66 an ounce at 9:10 a.m. UAE time.
In the United Arab Emirates, 24K opened at Dh211.5 per gram on Tuesday morning from its close last night at Dh211.25 per gram. Among other variants of the precious metal, 22K was trading at Dh198.5 per gram, 21K at Dh189.5 and 18K at Dh162.5.
Gold fell for a fourth straight session on Monday as investors preferred the safety of the dollar to protect against new Covid-19 restrictions in China that fueled worries about the global economic outlook.
In addition, San Francisco Federal Reserve Chair Mary Daly said on Monday that the real impact of the U.S. central bank’s interest rate hikes is likely greater than her near-term rate target implies. .
Edward Moya, senior market analyst at Oanda, said gold would only be a safe haven if the dollar was in defensive mode.
“Gold needs the Covid situation in China to improve before it becomes attractive to investors again. If the USD rally becomes excessive, gold could be vulnerable to a drop towards the $1,700 level,” did he declare.
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