Market sentiment has shifted away from the possibility of early interest rate cuts by the Federal Reserve
Gold prices dipped in the UAE at the opening of the markets on Thursday.
The Dubai Jewellery Group data showed 24K trading at Dh246.25 per gram on Thursday morning as compared to Dh246.5 per gram at the close of the markets on Wednesday. Among the other variants of the yellow metal, 22K opened lower at Dh228.0 per gram, 21K at Dh220.50 and 18K at Dh189.0.
Spot gold was down by 0.2 per cent at $2,032.51 per ounce, as of 9.35am UAE time as a pushback from US Federal Reserve officials on market hopes for early interest rate cuts offset safe-haven demand after Israel rejected a ceasefire offer from Hamas amid continuous talks to end the Gaza conflict.
Vijay Valecha, chief investment officer of Century Financial, said market sentiment has shifted away from the possibility of early interest rate cuts by the Federal Reserve, given the recent string of robust US macroeconomic data indicating a resilient economy.
“From a technical viewpoint, a continuation of selling pressure below the $2,012-$2,010 range may expose the psychological support level at $2,000, signalling a fresh bearish sentiment among traders,” he said.
Conversely, according to Century Financial CIO, a breakthrough above the 50-day Simple Moving Average (SMA) around the $2,033 mark would indicate the presence of buyers and could encounter resistance in the $2,054-$2,055 zone.
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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.