UAE: Gold prices drop in Dubai ahead of Fed meeting

Investors and traders were waiting for the Fed's policy decision for an updated outlook on the economy and monetary tightening path

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Waheed Abbas

Published: Wed 20 Sep 2023, 9:46 AM

Last updated: Thu 12 Oct 2023, 3:28 PM

Gold prices fell in the UAE at the opening of the markets on Wednesday after hitting a week-high on Tuesday.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh233.75 per gram at 9 am local time on Wednesday as against last night’s close of Dh234.5 per gram, while 22K, 21K and 18K opened at Dh216.5, Dh209.5 and Dh179.5 per gram, respectively.

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Globally, spot gold eased 0.05 per cent to $1,930.46 per ounce by 9.25 am UAE time

Investors and traders were waiting for the US Federal Reserve's policy decision for an updated outlook on the economy and monetary tightening path.

Vijay Valecha, chief investment officer, Century Financial, said Gold traded above the $1,930 level ahead of the highly anticipated Federal Reserve meeting on Wednesday, and while it is widely expected to maintain interest rates at their current level, all eyes were on its stance regarding inflation and future policy directions.

“Technically, the current gold price is trading above the 61.8 per cent Fibonacci retracement level of the downtrend, which spanned from $1,953.47 to $1,900.82, placing it at $1,934.5. Initial resistance may come into play around the Senkou B IchiMoku cloud at $1,940, followed by a higher resistance level at $1,947.5. Alternatively, support levels are likely to be found at $1,924, which aligns with the 200-day Simple Moving Average (SMA), and further down at $1,918,” said Valecha.

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Waheed Abbas

Published: Wed 20 Sep 2023, 9:46 AM

Last updated: Thu 12 Oct 2023, 3:28 PM

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