Gold stabilized on Friday, ahead of US employment data due later today, although the metal was pegged for its biggest weekly drop since late November, weighed down by more bond yields. firm as traders braced for faster rate hikes by the Federal Reserve.
Spot gold fell 0.1% to $ 1,790 an ounce after two consecutive sessions of decline, bringing its weekly decline to around 2%. US gold futures rose 0.2% to $ 1,792.60.
In the United Arab Emirates, the price of 24 karat gold is expected to trade between 213 Dh and 220 Dh in the coming days. The price of gold in the UAE, which fell by around 3 Dh per gram on Thursday, rose by around 1 Dh on Friday morning.
The price of 24 karat gold in the United Arab Emirates was Dh 217.25 per gram on Friday, up from Dh 216.50 the day before, but still down Dh 4 from Dh 221.25 per gram. Wednesday. The 22 karat price was at Dh204.0, 21 karats at Dh194.75 and 18 karats at Dh166.75. To watch the gold prices in the United Arab Emirates click here.
Omicron uncertainty will drive up prices
The World Health Organization (WHO) has said the Omicron variant cannot be considered “soft,” while higher yields have capped bullion gains.
The more infectious Omicron variant of COVID-19 appears to produce less severe disease than the globally dominant Delta strain, but it should not be classified as “mild,” World Organization officials said Thursday health (WHO).
Alarmed by the persistence of uncomfortably high inflation, even the most accommodating of US central bankers now agree they will have to tighten their policy this year.
“Markets are increasingly valuing an aggressive Fed… the whole prospect of the Fed trying to control an inflation epidemic is obviously raising yields,” IG Markets analyst Kyle Rodda said, adding that bullion was losing momentum. part of its appeal based on that.
According to the CME FedWatch Tool, traders are currently anticipating a more than 70% chance of a rate hike of at least 25 basis points at the March Fed meeting.
Gold is seen as a hedge against higher inflation, but the metal is very sensitive to rising US interest rates, which increases the opportunity cost of holding unproductive bullion.
Shelters are becoming safer
Benchmark 10-year US Treasury yields hit their highest level since March 2021, while 10-year TIPS yields hit record highs in June 2021. Higher yields increase the opportunity cost of trading. gold holding.
Bullion is considered a hedge against inflation, but the metal is very sensitive to rising US interest rates, which increases the opportunity cost of holding unproductive bullion.
Spot gold could stabilize around support at $ 1,782 an ounce and climb into a range of $ 1,801 to $ 1,815, according to Reuters technical analyst Wang Tao.
Looking ahead, the US non-farm payroll report due at 1:30 p.m. GMT is on investor radar.
“A number above 550,000 or 600,000 will strengthen the faster narrowing of the Fed narrative and weigh on gold. A number below 250,000 will alleviate these concerns and provide some support for gold,” Jeffrey said. Halley, Senior Market Analyst at OANDA.
Spot silver was little changed at $ 22.14 an ounce, platinum was up 0.2% to $ 966.50 and palladium edged down 0.1% to $ 1,872.02.