UAE: Gold prices drop Dh2 per gram in early trade

Spot gold was down 0.29% at $1,831.12 per ounce at 9.20am UAE time

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Reuters file
by

A Staff Reporter

Published: Wed 1 Jun 2022, 9:35 AM

Gold prices fell on Wednesday morning as the strengthening US dollar continued to sap demand for greenback-priced bullion.

Spot gold was down 0.29 per cent at $1,831.12 per ounce at 9.20 am UAE time.

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In the UAE, 24K gold price fell Dh2 per gram at the opening of the market on Wednesday to trade at Dh222.0 per gram.

Among the other variants of the precious metal, 22K opened at Dh208.5 per gram, 21K at Dh199.0 and 18K at Dh170.5.

“As I warned yesterday, the real test of gold’s resilience would be if it held firm in the face of US dollar strength and rising US yields again. On both counts, it failed overnight,” said Jeffrey Halley, senior market analyst at Oanda.

“Gold’s inability to weather the most modest US dollar strength bodes ill and reinforces my fear that its recovery from $1,780 has been built on sandy foundations. Gold now has resistance at $1,840, previous support and the 200-day moving average. That is followed by $,1860 and $1,870 an ounce. If dollar strength persists, and US yields continue rising, gold is increasingly at risk to retest $1,800 and then $1,780 an ounce. Failure of $1,780 signals a deeper, and possibly disorderly fall to $1,700 an ounce,” said Halley.

waheedabbas@khaleejtimes.com

A Staff Reporter

Published: Wed 1 Jun 2022, 9:35 AM

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