In the early hours of Thursday’s trading session, gold prices in Dubai experienced a marginal dip, reflecting shifts in market sentiment and global economic factors.
Data from the Dubai Jewellery Group indicated a subtle decrease in the price of 24K gold, opening at Dh246.25 per gram compared to Dh246.5 per gram at Wednesday’s market close. Other gold variants also saw similar trends, with 22K opening at Dh228.0 per gram, 21K at Dh220.50, and 18K at Dh189.0.
The slight decline in gold prices aligns with the global spot gold rate, which was down by 0.2 percent at $2,032.51 per ounce as of 9.35am UAE time. Market analysts attribute this to pushback from US Federal Reserve officials against expectations of early interest rate cuts. This response comes in light of recent robust US macroeconomic data, suggesting a resilient economy that may not necessitate immediate rate reductions.
Vijay Valecha, Chief Investment Officer at Century Financial, commented on the shifting market dynamics. “Market sentiment has moved away from the likelihood of early interest rate cuts by the Federal Reserve,” he noted, referencing the strong economic indicators in the US. Valecha also provided insights into the technical aspects of the gold market, stating that a continuation of selling pressure below the $2,012-$2,010 range could lead to the psychological support level at $2,000, signaling a new bearish sentiment among traders.
On the flip side, if gold prices break through the 50-day Simple Moving Average (SMA) around the $2,033 mark, it would suggest a resurgence of buying interest, potentially facing resistance in the $2,054-$2,055 zone, according to Valecha.
The slight adjustment in gold prices in Dubai reflects the interconnected nature of global markets and the impact of international economic policies on local commodities. Investors and consumers in the UAE and globally continue to monitor these developments closely, as gold remains a key asset in financial and retail markets.
