UAE: Gold prices steady in Dubai in early trade

Yellow metal rates were down 0.13% at $2,327.63 per ounce at 9.05 am local time

Waheed Abbas

Published: Tue 25 Jun 2024, 9:33 AM

Gold prices were steady at the opening of the markets in Dubai on Tuesday. According to Dubai Jewellery Group data, the 24K, 22K, 21K and 18K variants of the yellow metal were trading at Dh281.75, Dh261.0, Dh252.5 and Dh216.5 per gram, respectively, remaining unchanged from last night's close.

Globally, gold prices were down 0.13 per cent at $2,327.63 per ounce at 9.05 am UAE time.

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Chris Weston, head of research at Pepperstone, said gold bulls will be watching the geopolitical news flow intently, with Russia pointing the finger at the US for attacks on Crimea and the crisis in Yemen.

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"If we're seeing a small rise in the geopolitical risk premium priced into crude, one could extend that towards gold – so we watch and react to the news flow here. What's also interesting is that we've seen really solid inflows into the gold ETFs lately, while futures positioning (held by managed money) has been the most bullish since March 2020.

"While the price action in gold is choppy and holding a sideways range, some are building a position and seeing some signs of an upside move; subsequently, a break of $2,368 would be a bullish trigger for me and detail that the buyers are in control, which could increase the probability of a push back to $2,400," he said.

Rania Gule, market analyst at XS.com, believes that the price of gold started a modest upward correction when it rebounded near $2,315 after a sharp decline on Friday.

"Gold faced intense selling pressure as the US dollar rose following the unexpectedly positive preliminary Global PMI report from Standard & Poor's for June, which showed that economic activity expanded unexpectedly and faster. The unexpectedly optimistic US PMI report also boosted the US dollar, making gold more expensive for foreign currency holders and exerting downward pressure on prices," she said.

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