Dubai: 24K gold price can touch Dh225 per gram this week

Commodity analysts say the precious metal could test a critical support level of $1,835

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by

Waheed Abbas

Published: Sun 21 Nov 2021, 9:14 AM

Last updated: Sun 21 Nov 2021, 9:15 AM

Outlook for the gold remains positive this week on account of strong demand from India and China.

Commodity analysts said the precious metal could test a critical support level of $1,835 is and it could go as high as $1,950 in December if it breaks the $1,867 barrier.

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The yellow metal last closed at $1,846 an ounce. In the UAE, the 24K was trading at $223.5 per gram, 22K at Dh210.0, 21K at Dh200.25 and 18K at Dh171.75 on Sunday morning.

The yellow metal traded in a range of $30 an ounce last week in international markets. The conflict between several Federal officials on tightening or maintaining the current policy stance has confused bullion traders. A significant reason behind gold's recent bull run is surging inflation and central banks' reluctance to raise the interest rate as they still view inflation as transitory.

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“Many of the headwinds are already discounted. The gold backdrop is positive on account of seasonality and strong demand from India and China. In the international markets, $1,835 per ounce is a critical support level. In the UAE, 24K gold has support near Dh221.25 and can target Dh225 per gram this week,” said Vijay Valecha, chief investment officer at Century Financial.

Rashad Hajiyev, founder and senior analyst at RM Capital Analytics, said the likely scenario is that gold clears $1,885-1,895 over the coming days and then sharply sells off for a re-test of previous resistance of $1,835-1,841, which should act support. “December target for gold is $1,925 - 1,950,” he said.

Muhammad Zulbahri Mohd Rajdi, chief analyst at Golden Brokers, said if gold drops below the current support level of $1,844, it can be the end of the rally.

“On the other hand, a move past the current resistance level of $1,867 mark is likely to spark a fresh wave of rallies for the precious metal, which can push its price beyond the $1,900 mark. Investors await a good entry point, keeping their eyes on gold price movements with an optimistic outlook for the future,” he added.

-waheedabbas@khaleejtimes.com

Waheed Abbas

Published: Sun 21 Nov 2021, 9:14 AM

Last updated: Sun 21 Nov 2021, 9:15 AM

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