From a technical standpoint, an expert said gold recently broke out of a wedge pattern, indicating a potential bullish trend
Gold prices slipped at the opening of the markets in Dubai on Wednesday, but continued to trade above Dh300 per gram.
At 9am UAE time, the 24K variant of the yellow metal dipped to Dh304.0 per gram, down from Dh304.25 per gram at the close of the markets on Tuesday. Among the other variants, 22K, 21K and 18K were trading at Dh281.5, Dh272.5 and Dh233.75 per gram, respectively.
Globally, gold was trading at $2,509.76 per ounce, down 0.6 per cent.
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Vijay Valecha, chief investment officer at Century Financial, said gold dipped after the all-out war of Israel-Hezbollah was averted.
“However, relief is expected to be short-lived due to ongoing concerns and uncertainty. The conflicts between Israel and both Hezbollah in Lebanon and Hamas in Gaza remain unresolved, with no clear end in sight... This uncertainty continues to support a bullish outlook on gold. Additionally, potential shifts in US monetary policy further support the precious metal,” he said.
From a technical standpoint, he said gold recently broke out of a wedge pattern, indicating a potential bullish trend.
“Moving forward, gold faces pressure if it remains below $2,516.7. If prices stay under this level, the outlook is bearish, with immediate support at $2,501.6. Conversely, if gold breaks above $2,516.7, it could resume a bullish trend, targeting resistance at $2,529,” he added.
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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.