The yellow metal prices on Wednesday were headed for their first monthly dip in 4 months
Gold prices slipped by half a dirham per gram in the UAE on Wednesday morning.
According to the Dubai Jewellery Group data, the 24K was trading down at Dh246.25 per gram at the opening of the markets on Wednesday as compared to last night’s close of Dh246.75 per gram. Among the other variants of the yellow metal, 22K opened lower at Dh228.0, 21K at Dh220.75 and 18K at Dh189.25 per gram.
Globally, spot gold edged 0.11 per cent lower to $2,034.32 per ounce by 9.05 am UAE time, after touching a two-week high of $2048.12 on Tuesday evening, supported by a softer dollar and lower Treasury yields as focus turned to the Federal Reserve's policy meeting for insight into how soon it will cut interest rates this year.
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The yellow metal prices on Wednesday were headed for their first monthly dip in four months as investors tempered their bets of swift and deep US rate cuts due to a resilient economy, and also awaited remarks from the Federal Reserve due later in the day.
Alex Kuptsikevich, senior market analyst at FxPro, said gold has been in a downtrend since the beginning of the year, although it usually starts the year strong.
“In years where we see early weakness in the first few weeks, the pressure soon builds. And we expect this trend to manifest itself as early as this week.
The price of the troy ounce could correct as low as $1,960, approaching the 200-day moving average, where the battle for the trend will likely intensify. If the bullish scenario comes to fruition, a move above $2,050 by the end of this week will significantly increase the chances of gold testing its all-time highs in the coming weeks,” he said.
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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.