Dubai: Gold prices steady in early trade after hitting record high
Gold prices were steady at the opening of the markets in Dubai on Monday.
At 9.30am UAE time, 24K was trading at Dh359.5 per gram while 22K was selling at Dh234.5 per gram as both remained unchanged.
Globally, gold was trading at $2,984.2 per ounce, down 0.42 per cent at 9.30am UAE time.
The precious metal hit an all-time high on Friday as prices surpassed $3,000 per ounce for the first time ever due to uncertainty around the US economy, tariff war, geopolitical tensions around the world and increased hopes of interest rate cuts from the US Federal Reserve fueling safe haven demand.
'The recent rally in gold has been driven by stagflationary fears," said Kelvin Wong, senior market analyst, Asia Pacific, at Oanda.
He said short-term momentum remains positive with the next intermediate resistances at $3,016 or $3,030.
However, he ruled out that there is no guarantee that there will not be a recession in the US.
He said that an upgrade of inflation forecast in the dot plot and US Fed chief Jerome Powell's hint during the press conference on the economic uncertainty that may arise due to the trade tariff policy may support a firmer gold price.
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