The yellow metal, which is considered a ‘safe haven’, is having a difficult year and has been behaving like a classic ‘risk asset’ since March, says analyst
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Published: Thu 29 Dec 2022, 10:24 AM
Gold prices rose on Thursday morning in the UAE and Asia as the US dollar and Treasury yields eased, with market participants awaiting new indications on the Federal Reserve’s rate hike plans.
Spot gold was up 0.16 per cent to $1,808.73 per ounce as of 9.30am UAE time.
In the UAE, the 24K gold price was trading at Dh219.25 per gram at the opening of the markets on Thursday, compared to its closing rate of Dh218.5 per gram last night.
Among the other variants of the yellow metal, 22K opened at Dh203 per gram, 21K at Dh196.5 and 18K at Dh168.25.
David Cottle, analyst at Dailyfx, said gold — which is considered a “safe haven” or “inflation hedge” — is having a difficult year.
“The metal has spent much of the time since March behaving rather more like a classic ‘risk asset’ than any sort of haven,” said Cottle.
“Stock markets and gold have been falling more or less together since March, which looks counterintuitive if the latter really is any sort of effective haven or inflation hedge… Prices do rise when disaster strikes or inflation rises. But it’s also clear that such gains have been short-lived, and that neither has come close to breaking the prevailing downtrend,” he added.