Dubai: 24K gold seen trading between Dh210 and Dh215 this week

Reuters

Dubai - Commodity analysts predict a bearish outlook for the precious metal

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by

Waheed Abbas

Published: Sun 10 Oct 2021, 9:07 AM

The near-term outlook for gold is bearish with 24K seen trading between Dh210 and Dh215 per gram in the UAE, say analysts.

In the UAE, 24K was trading at Dh212.75 per gram, 22K at Dh200.0, 21K at Dh190.75 and Dh18K at Dh163.5 on Sunday.

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The precious metal shot up to $1,780 an ounce on Friday evening as the US jobs data came much worse than expected, but still closed out the week below the $1,760 levels. The yellow metal last closed at $1,756.94 last week.

Gold seems to be trading in a broad range between $1,720 and $1,780 since the last three weeks and this trend is most likely to continue in the coming week. In the UAE, 24K has resistance near Dh215.50 and support at Dh210 per gram, said Vijay Valecha, chief investment officer at Century Financial.

“The bullion's macro-environment continues to be challenging, with Central Banks worldwide withdrawing the emergency stimulus measures introduced in the aftermath of the pandemic in 2020. New Zealand has already hiked its cash rate this week to 50 basis points. In the year before, gold performed well as Central Banks monetary stimulus acted as a tailwind. In the current scenario, those tailwinds will become headwinds, which could pull the prices downwards,” added Valecha.

Naeem Aslam, chief market analyst at AVA Trade, said $1,718 is an important level of support, and if the price drops below this price point, the chances are that the precious metal may see an intense selloff in the coming days.

Daniel Dubrovsky, strategist at DailyFX, has also projected a bearish outlook for the precious metal for the near term.

-waheedabbas@khaleejtimes.com

Waheed Abbas

Published: Sun 10 Oct 2021, 9:07 AM

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