Gold held steady on Wednesday after closing higher for the first time in 10 sessions the previous day, supported by an easing dollar and weaker Asian stocks.
Spot gold was down 0.02 per cent at $1,213.61 an ounce at 8.36am UAE time. Bullion gained 0.8 per cent on Tuesday in its biggest one-day gain since May 13. US gold was down at $1,213.
The safe haven asset has gained about 15 per cent so far this year, but has been under pressure since the release of the minutes from the US Federal Reserve's April meeting boosted expectations of an imminent rate rise.
Bullion had its biggest decline in six months in May, losing about 6 per cent.
Gold not out of woods yet
"The fact that gold did not undergo another sharp selling bout on Tuesday in light of strong U.S. macro data (and an equally strong dollar) tells us that participants may already have discounted a rate rise," INTL FCStone analyst Edward Meir said in a note.
"However, we do not want to buy gold just yet, but would rather wait for a pullback to the $1,180-$1,190 level where we see more credible support."
US consumer spending recorded its biggest increase in more than six years in April as households stepped up purchases of automobiles, suggesting an acceleration in economic growth that could persuade the Fed to raise interest rates soon.
An increase in US rates would raise the opportunity cost of holding gold, which does not earn interest. It would also bolster the dollar, making gold more expensive for buyers in other currencies.
US non-farm payrolls data for May is due on Friday and a solid reading could heighten expectations for a June rate rise.
"We expect further correction as the numbers should come in favourably for the Fed to move as early as July and so, taking that into consideration, I think we're not done yet in the adjustment process," said Dominic Schnider of UBS Wealth Management in Hong Kong.
Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors' appetite for riskier assets, while the recently bullish dollar stalled against the euro and yen following a mixed bag of US economic data.
Gold rates for Wednesday, June 1, 2016
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DD/TT RATES AT 03.45 PM - 1 June 2016
Weekly Gold Rates
Rates will be updated twice daily
Emirates 24|7 brings you the daily Dubai gold rate (22k, 24k, 21k and 18k), as well as currency exchange rates, including the Indian rupee, Pakistani rupee, Philippine peso, Sri Lankan rupee, sterling pound, euro and may more against the UAE dirham (US dollar).
The rates for 24 carat, 22 carat, 21 carat, 18 carat and Ten Tola (TT) Bar (11.6638038 gram) will be updated four times a day to keep them fresh and relevant for buyers of gold bars and gold jewellery in the UAE.
The update times for Retail Gold Rate in Dubai will be at 9.30am, 2.30pm, 5pm and 8pm (unless there is drastic fall or rise in the international rate).
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The Retail Gold Rate in Dubai is being supplied by the Dubai Gold and Jewellery Group.
Foreign Exchange Rates
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These will cover both the Remittance Rates [for sending money] and the Currency Notes Rates [for buying and selling of currency notes].
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