Gold Prices Fall Sharply in Dubai as Global Market Dips Over 1%

At 9:00 am UAE time, the price of 24K gold in Dubai fell to Dh318.25 per gram, down Dh3.25 from the weekend's closing rate of Dh321.5. Other variants also followed suit, with 22K gold priced at Dh294.5, 21K at Dh285.25, and 18K at Dh244.5 per gram

Gold prices saw a significant drop in Dubai on Monday, marking a notable decline of more than Dh3 per gram across all major variants. The downturn in local rates aligns with global trends, where the yellow metal registered a fall of over one per cent in early trading on the first business day of the week.

At 9:00 am UAE time, the price of 24K gold in Dubai fell to Dh318.25 per gram, down Dh3.25 from the weekend’s closing rate of Dh321.5. Other variants also followed suit, with 22K gold priced at Dh294.5, 21K at Dh285.25, and 18K at Dh244.5 per gram.

Advertisement

Globally, spot gold was trading at $2,627.91 per ounce at 9:10 am UAE time, representing a decline of 0.91 per cent. The sharp drop comes as the market shows signs of caution, even at the current historically high levels.

Market Trends and Analysis

The plunge in gold prices follows a four per cent drop at the start of the previous week, driven by news of a ceasefire between Lebanon and Israel. While the market showed recovery from Tuesday to Friday, this week’s opening suggests renewed bearish sentiment. Analysts attribute the fluctuations to technical factors and geopolitical developments.

“The price found support at $2,600 per ounce, which also provided a crucial level in late September and early October,” explained Alex Kuptsikevich, chief market analyst at FxPro. He noted that the current dip below the 50-day moving average signals a shift in momentum, with bearish forces taking control.

Kuptsikevich emphasized the importance of confirmation in the coming sessions. “A further drop below $2,600 would set the stage for sellers to target the month’s lows at $2,540, with the potential for prices to decline toward $2,400. In the long term, the $2,000 per ounce level could come into focus.”

Conversely, a weekly or monthly close above $2,670 might indicate a reversal, allowing gold to reclaim territory above the 50-day moving average and potentially resuming an upward trajectory.

Cautious Buying Prevails

Despite the decline, last week’s rally between Tuesday and Friday suggested sustained interest from buyers, albeit cautiously. Industry observers believe this reflects ongoing investor appetite for gold as a hedge against economic uncertainty, inflation, and geopolitical risks.

Advertisement

Dubai’s gold market, a regional hub for precious metals, is particularly sensitive to global price movements, with local rates fluctuating in tandem with international benchmarks.

Outlook for Gold Investors

With gold prices teetering around critical support levels, analysts recommend close monitoring of technical indicators and geopolitical developments. Kuptsikevich’s projections highlight the importance of price behavior around the $2,600 mark as a determinant of near-term market direction.

While the current dip presents challenges for short-term traders, long-term investors may view the correction as an opportunity, particularly if prices stabilize or rebound above key resistance levels.

As the year-end approaches, market participants will be watching closely to see if gold can regain its footing and build on the cautious optimism seen during the mid-week rally. For now, the market remains at a crossroads, with bearish and bullish forces vying for control.

 

Tariq Saeed

Read More

Tunisian Expat Imen Sfaxi Honored with Abu Dhabi Award for Heroic Acts Amid Tragic Fire

Despite being cautioned to prioritize her safety, Sfaxi exhibited extraordinary courage by rushing to the scene. Witnessing people in dire need of assistance, she immediately sprang into action, evacuating residents and providing crucial first aid to those injured

Melissa Skerrit collaborates with Public Works Ministry to promote education in Dominica

Dominica: Melissa Poponne-Skerrit, has recently shared an update regarding her participation in the initiative in association with the Ministry of Public Works to promote education sectors in the nation.

Najah returns to Abu Dhabi and Dubai in October 2022

The 16th edition of Najah, UAE's higher education fair, is returning to two emirates this year. Najah Abu Dhabi will be inaugurated from 16 to October 18, whereas Najah Dubai will occur from October 23 to 25.

Recent

Dubai to set up a new schools group to enhance quality of education

A new schools group is being formed in Dubai to enhance the quality of education offered to the Emiratis and residents and help train students for university abroad. The information was disclosed on Friday, 29 April.

Historical Treasures Unveiled at Abu Dhabi International Book Fair

One of the highlights of the exhibition is a mid-19th-century map featuring one of the earliest mentions of Abu Dhabi. Dubbed "Abuthubbi," this map holds a significant place in the historical narrative of the region

UAE Rainfall: National Guard Conducts 136 Search and Rescue Operations

Among the 136 operations, 65 were dedicated to medical evacuations, highlighting the urgent need to transport individuals to hospitals for medical attention amidst the adverse weather conditions
admin