Gold Prices In Dubai Steady After Four-Day Rally As Investors Await Fed Clues
The 24K variant was trading at Dh559.25 at the market open on Wednesday, losing Dh0.75 from the close of the market on Tuesday. Among the other variants of the precious metal, 22K, 21K, 18K, and 14K, were trading at Dh517.75, Dh496.50, Dh425.50, and Dh332, respectively.
Recommended For YouGlobally, spot gold was trading at $4,642.05 per ounce, up 0.11 per cent. Silver was also up 0.55 per cent, trading at $69.08 per ounce.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Vijay Valecha, CIO of Century Financial, said gold was consolidating after three consecutive weekly gains, having briefly climbed close to $4,700 an ounce and reaching its highest intraday level since mid-May.
He said the recent rally was supported by a weaker US dollar after the US Treasury signalled plans to increase buybacks of long-dated bonds by at least $14 billion between September 9 and November 4.
“Thus, it is only natural for gold to consolidate after three back-to-back weekly gains,” Valecha said.
Attention is now turning to the Jackson Hole Symposium, where Fed Chair Kevin Warsh is scheduled to speak on Friday. Valecha said investors will be watching for clues on the Federal Reserve's approach to inflation and interest rates.
He added that positioning in gold remains supportive, pointing to increased holdings by money managers, resilient central bank purchases and a narrowing spread between spot and futures prices.
Geopolitical tensions are also adding to gold's appeal as a portfolio hedge, Valecha said, as the US threatens economic measures against Iran and tensions between Washington and Canada escalate following a breakdown in trade negotiations.
On the technical front, he said gold faces an immediate hurdle at $4,651 an ounce. A sustained break above that level could open the way towards $4,700 and $4,765, while support is seen at around $4,560.
Valecha also said silver was benefiting from similar factors supporting gold. Indian imports have started recovering, with 90 tonnes entering through the India International Bullion Exchange in August after six months of inactivity.
He said further shipments could ease supply tightness as jewellers restock ahead of India's festival and wedding season, although imports would need to more than double in the second half of the year to approach 2025 levels.
ALSO READ- Dubai gold prices: Why UAE residents are locking in rates for Diwali and Navratri Gold prices ease after 3-month high amid US threatening 'economic onslaught' Gold prices in Dubai hit highest level in three months as 24K nears Dh560
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment