Globally, spot gold was trading at $2,627.91 per ounce, down 0.91 per cent at 9.10am
KT Photo: Shihab
Gold prices plunged more than Dh3 per gram in Dubai on Monday as the yellow metal fell over one per cent globally in early trade on the first trading day of the week.
At 9am UAE time, the 24K variant of the precious metal fell to Dh318.25 per gram compared to Dh321.5 per gram at the close of the markets over the weekend, down Dh3.25 per gram.
Among the other variants, 22K fell to Dh294.5, 21K to Dh285.25 and 18K to Dh244.5 per gram.
Globally, spot gold was trading at $2,627.91 per ounce, down 0.91 per cent at 9.10am UAE time. It fell below one per cent in early trade.
[Editor's Note: For real-time gold rates, click widget below or visit KT's dedicated Trading News page here.]
Gold fell four per cent at the start of last week due to the ceasefire between Lebanon and Israel but recovered later. The slow but steady rally from Tuesday to Friday suggested cautious buying, indicating continued interest even at current historically high levels.
“The price found support at $2,600 per ounce, which also provided support in late September and early October. Technically, the sharp dip is an important signal that the bears are in control, having taken the price below the 50-day moving average shortly after attempting to consolidate higher,” said Alex Kuptsikevich, chief market analyst at the FxPro.
“However, confirmation will now be key. A further drop below $2,600 would make the area of this month's lows at $2,540 the short-term target for the sellers, with the market continuing to move towards $2,400. The long-term target, in this case, is the $2,000 an-ounce area,” he added.
A weekly and monthly close above $2,670, according to Kuptsikevich, could be a signal for further gains, marking a return to territory above the 50-day moving average.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.