Home Business Gold Prices Hold Steady in Dubai, Analysts Predict Drop to $1,800

Gold Prices Hold Steady in Dubai, Analysts Predict Drop to $1,800

At 9.10am UAE time, spot gold remained unchanged at $1,889.52 per ounce.

Gold Prices Hold Steady in Dubai, Analysts Predict Drop to $1,800

At the beginning of the trading week, gold prices in the UAE remained steady. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh229.25 per gram, showing a slight increase of Dh0.25 from the previous week. The prices for other gold variations were as follows: 22K at Dh212.25 per gram, 21K at Dh205.5 per gram, and 18K at Dh176.0 per gram as of 9 am UAE time.

In the global market, spot gold exhibited stability, standing at $1,889.52 per ounce by 9:10 am UAE time.

Over the last five trading sessions, the prices of precious metals experienced a decline, partly due to investors preparing for a gathering of central bankers to gain insights into the economic outlook and interest rates.

Daniel Dubrovsky, a contributing senior strategist at dailyFX, noted that gold prices were impacted by rising Treasury yields in the longer-term spectrum. This could be attributed to financial markets anticipating a higher terminal rate set by the Federal Reserve, even in the midst of solid economic data.

Alex Kuptsikevich, a senior market analyst at FxPro, suggested that the potential downward target for gold could be around the $1,800 mark.

Kuptsikevich observed that gold’s recent significant drop began about a month ago when it failed to consolidate above the critical resistance level of $1,980, which had been present since May. In August, gold first dipped below the 50-day moving average and then, a couple of days ago, slipped below the 200-day moving average. Both of these moving averages serve as indicators for medium and long-term trends. Kuptsikevich also highlighted that despite a decrease below the 50-day MA, gold did not manage to recover, leading to a further sell-off.

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