Photo for illustrative purposes only. ARCHIVE

In holiday-thinned trading, a weaker dollar inched the gold prices higher in the UAE and around the world on Thursday. However, prices moved in a narrow range as market participants awaited economic data for further direction. Spot gold rose 0.27 percent to $1,819.96 per ounce as of 9.25 am UAE time. At the start of the markets on Thursday, the price of 24K gold in the UAE increased slightly to Dh220.5 per gram. In the meantime, 22K, 21K, and 18K began trading at Dh204, Dh197, and Dh169 per gram, respectively. Since the dollar index fell by 0 points and 2 percent, gold became more affordable for owners of other currencies. "Gold is holding a range as trading is fairly thin, and investors are in wait-and-see mode. The PCE (personal consumption expenditure) data will be important; if inflation continues to come down, the dollar will further weaken and gold will get a steadier tone," Edward Meir, an analyst with ED&F Man Capital Markets, said. Since hitting a more than two-year low in late September due to expectations for a slower pace of Fed rate hikes, gold has increased by about $200. The Federal Reserve lowered its pace of rate hikes gradually to 50 bps in December after four straight 75 bps rate hikes. However, Fed Chair Jerome Powell has signaled that the US central bank will deliver more rate hikes next year. BKM/ Expat Media
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