Gold prices fell on Wednesday morning as the dollar recovered slightly, piling pressure on greenback-priced bullion along with firm Treasury yields and an aggressive inflation stance by the US Federal Reserve chief.
Spot gold dropped 0.25% to $1,810.19 per ounce at 9.15am UAE time.
In the UAE, precious metal prices fell in line with global rates.
The Dubai Gold and Jewellery Group data showed 24K opening at Dh219.25 per gram, down from Dh221.0 per gram at the close of the market on Wednesday. Among the other variants of the yellow metal, 22K was trading at Dh205.75 per gram, 21K at Dh196.5 and 18K at Dh168.25.
Gold has been consolidating since the end of last week but the overall direction is down, towards about $1,750, said Ilya Spivak, a currency strategist at DailyFX.
“The question is when do we find fresh momentum to take us there?” Spivak said.
The dollar edged higher after a three-session slide, increasing the appeal of gold for investors holding other currencies.
“Gold’s very focused on rates and the outlook for monetary policy, especially in the US,” Spivak said, adding that the dollar was not done rallying.
The Federal Reserve chairman Jerome Powell on Tuesday pledged that the US central bank would ratchet interest rates as high as needed to kill a surge in inflation that he said threatened the foundation of the economy.