Dubai Gold Prices: 24K Trades At Dh517 As Oil Prices, Fed Rate Outlook Weigh On Market
The 24K gold variant was trading at Dh517 per gram at the open of the markets on Thursday, up from Dh516.25 on Tuesday's session.
Recommended For YouThe other variants, 22K, 21K, 18K, and 14K, were trading at Dh478.75, Dh459, Dh393.5, and Dh306.75, respectively.
Globally, the spot gold price was trading at $4,291.3 per ounce, up 0.2 per cent, as of 9:00am UAE time. Silver was down 0.25 per cent, trading at $64.28 per ounce.
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The precious metal has been more sensitive to recent fluctuations in oil prices, financial analyst and CIO of Century Financial, Vijay Valecha, said, as investors decide if the high levels of energy prices will be sufficient to maintain inflationary pressures and thus lead to further increases in Fed interest rates.
“Since higher borrowing costs generally weaken the case for holding gold because the metal does not pay interest, its attractiveness as a hedge within a portfolio seems to be standing firm thanks to strong inflows into gold ETFs and demand from central banks, even though US real yields are rising and the strength of the dollar is limiting immediate gains,” the analyst explained.
On the technical front, gold rebounded with support from the 200-day Exponential Moving Average (EMA) around the $4320 level, continuing its range-bound movement since the start of the month, Valecha explained.
“A decisive close below this level would need to be achieved to confirm a downtrend in the short term with the next potential support coming in around the $4261 level from an upward-sloping trendline connecting the lows of July 17, July 29, August 3, and September 16,” he said.
“Silver shows a similar technical profile and would need to clear the $67.50 level from recent highs decisively to potentially trigger buying momentum. 200-day EMA lies near $65.56, with yesterday's lows near $64.56 providing near-term support,” he added.
ALSO READ- Gold loses shine as rate hike bets foster a stronger dollar Dubai gold prices ease as inflation concerns, oil prices weigh on precious metals Gold price seen trading $4,000-4,500 range as strong dollar checks safe-haven demand
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