Gold prices rose in the UAE on Thursday morning, but the precious metal’s prospects were dimmed by the Federal Reserve’s aggressive stance on inflation.
At 9.10 a.m. UAE time, spot gold was trading at $1,814.68 per ounce.
The price of 24K gold in the UAE rose half a dirham at the market’s opening on Thursday.
24K was trading at Dh219.75 per gram, up from Dh219.25 at the close of the market on Wednesday, according to data from the Dubai Gold and Jewellery Group. Meanwhile, the opening prices for the 22K, 21K, and 18K were Dh206.5, Dh197.0, and Dh169.0, respectively.
Gold prices fell 0.53 percent on Wednesday, despite the US dollar falling sharply overnight and risk sentiment generally rising.
“We should all take it as a warning sign when gold falls in tandem with the US dollar, implying that lower prices are the path of least resistance.” As a result, I believe gold’s downside risks have increased,” said Jeffrey Halley, an Oanda senior market analyst.
$1,789 is a strong support level, followed by $1,780. If the latter fails, a deeper correction to $1,700 is likely. If $1,780.00 fails, that move could happen quickly. “Gold faces resistance at $1,836, then the 200-Daily Moving Average at $1,836.80, and finally $1,850 per ounce,” according to Oanda.
