In the UAE, the 24K gold price fell to Dh225.5 per gram on Wednesday morning as compared to Dh226.25 per gram at the close of the market on Tuesday.
Among the other variants of the precious metal, 22K opened at Dh211.75 per gram, 21K at Dh202.25 and 18K at Dh173.25.
Naeem Aslam, chief market analyst at AVA Trade, said the US Federal Open Market Committee (FOMC) Minutes will be the key event for the gold price, and in terms of the price levels, traders are keeping a close eye on two critical price levels. “Firstly, it is the support at $1,812; a violation of that price could bring further weakness for gold. As for the upside, watch the 1,900 resistance level.”
The dollar index firmed after hitting its lowest level in a month in the previous session, making greenback-priced bullion more expensive for buyers holding other currencies.
“Investors are struggling with how to assess the landing path of inflation now that peak inflation is behind us. The question for the market is how long it will take to normalize, and that uncertainly is helping gold,” said Stephen Innes, managing partner at SPI Asset Management.
“Gold investors notice the softer change in the Fed language, and dips to $1,850 are met with solid support,” Innes said.