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.
