Gold prices fell on Wednesday as the dollar remained at a two-year high, putting downward pressure on demand for greenback-priced gold.
As of 9.12 a.m. UAE time, spot gold was down 0.44 percent at $1,898.37 per ounce.
24K gold prices in the UAE dropped from Dh230.75 per gramme on Tuesday evening to Dh230.0 per gramme on Wednesday morning. At the start of the market on Wednesday, 22K, 21K, and 18K prices fell to Dh216.0, Dh206.0, and Dh176.75 per gramme, respectively.
Concerns over China’s weakening growth and anticipation that the Federal Reserve will rapidly hike rates spurred demand for the dollar, which held steady after surging to its highest level since March 2020 on Tuesday.
For holders of foreign currencies, a higher dollar makes gold priced in greenbacks less appealing.
In the previous session, gold prices had found some support as investors sought refuge from fears of slowing global economic growth and rising inflation.
During economic and political crises, gold is considered a secure store of value.
