In early Tuesday trade, gold prices held steady in Dubai. According to Dubai Jewellery Group data, the 24K, 22K, 21K, and 18K gold variants were trading at Dh281.75, Dh261.0, Dh252.5, and Dh216.5 per gram, respectively, unchanged from the previous evening.
Global Market Impact
Globally, gold prices dipped by 0.13% to $2,327.63 per ounce at 9:05 am UAE time. Chris Weston, head of research at Pepperstone, highlighted that gold investors are closely monitoring geopolitical developments, particularly Russia’s accusations against the US regarding Crimea and the Yemen crisis. “If geopolitical risks are pushing crude prices up, this could also extend to gold. It’s noteworthy that gold ETFs have seen solid inflows recently, and futures positioning by managed money is the most bullish since March 2020,” Weston said.
He added, “Gold’s price action is choppy and within a sideways range, but there’s some building of positions with signs of an upside move. A break of $2,368 would be a bullish signal for me, indicating buyer control and potentially pushing prices back to $2,400.”
Market Reactions and Predictions
Rania Gule, market analyst at XS.com, noted that gold prices began a modest upward correction after rebounding near $2,315 following a significant drop on Friday. “Gold faced intense selling pressure as the US dollar strengthened after the unexpectedly positive preliminary Global PMI report from Standard & Poor’s for June, which showed an unexpected and faster expansion in economic activity. The optimistic PMI report boosted the US dollar, making gold more expensive for foreign currency holders and exerting downward pressure on prices,” Gule explained.
