On the first trading day of the week, gold prices in Dubai saw an increase, opening higher in the markets.
According to the Dubai Jewellery Group, the 24K gold variant opened at Dh289.75 per gram at 9 am on Monday, up from last week’s closing price of Dh289 per gram. Other gold variants also saw price hikes, with 22K at Dh268.25, 21K at Dh259.75, and 18K at Dh222.75 per gram. On a global scale, spot gold remained steady at $2,395.37 per ounce at 9.15 am UAE time.
Despite this rise, the yellow metal was nearing its second consecutive week of declines, having fallen to $2,372 per troy ounce on Friday morning, which is $111 below its high on July 17th.
“Gold found buying support on Thursday and early on Friday at the crossover of the 50-day moving average near $2,360. This also coincides with the consolidation centre of the repeated pullbacks from April to June. This means that the decline in this area is well within the framework of a correction, and it is not yet possible to claim that the gold rally has broken and that a top has been established for many months and years to come,” explained Alex Kuptsikevich, senior market analyst at FxPro.
Kuptsikevich further noted, “Therefore, there are two possible lines of defence for gold in the short term: $2,360 and $2,320. It is worth keeping a close eye on the price action around these levels. If gold breaks through them with a strong move, we should be prepared for a prolonged decline. If the buyers manage to break the trend near one of these lines, the price may well continue to rise on buyers’ encouragement.”
Gold’s resilience in avoiding a sell-off in June, after breaking the 50-day average, likely contributed to its new highs in July. “This story could be repeated if the financial markets avoid another deep sell-off and return to growth even without an official correction,” added Kuptsikevich.
