UAE: Gold prices start the week on a higher note, rising Dh1 per gram

After a recent dip to multi-week lows, the yellow metal has stabilised with reduced volatility

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Photo: AFP file
by

Waheed Abbas

Published: Mon 29 Jan 2024, 9:28 AM

Gold prices rose by Dh1 per gram in the UAE on Monday morning as investors rushed to safe-haven metal amidst the Middle East crisis.

The Dubai Jewellery Group data showed 24K trading at Dh245.5 per gram on the first trading day of the week as compared to last week’s close of Dh244.5, while 22K, 21K and 18K also opened higher at Dh227.25, Dh220.0 and Dh188.5 per gram, respectively.

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Globally, spot gold was up 0.22 per cent at $2,026.32 per ounce by 9.02am UAE time as escalations in the Middle East triggered safe-haven buying, while traders awaited US Federal Reserve's chairman Jerome Powell's remarks at the end of its two-day policy meeting this week for interest rate outlook.

Vijay Valecha, chief investment officer of Century Financial, said investors are adopting a cautious stance.

“Despite the US dollar being defensively positioned just below its recent peak due to declining US Treasury bond yields, geopolitical tensions in the Middle East and global economic uncertainty provide support for the safe-haven metal. However, reservations about a more aggressive Fed policy easing in 2024 are restraining bullish sentiment on the dollar and limiting potential gains,” he said.

After a recent dip to multi-week lows, he added that gold has stabilised with reduced volatility, trading within the range of trendline resistance at $2,030 and horizontal support at $2,011.

“Breaking these technical levels is crucial for significant directional shifts, as failure to do so may result in continued consolidation. Looking ahead, a breakout to the upside could drive gold towards $2,065, with further gains possibly leading to a rally reaching $2,080. Conversely, a bearish breakdown may find support at $1,990 and $1,975, and extended losses could bring attention to the 200-day simple moving average,” added Valecha.

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Waheed Abbas

Published: Mon 29 Jan 2024, 9:28 AM

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