Gold prices in Dubai eased on Wednesday after starting this week on a weaker note amid renewed inflation concerns and a rise in oil buying interest.
The 24K variant was trading at Dh523.50 per gram at the open of the markets on Wednesday, down from Dh526 per gram at the close of the markets a day before.
According to data by the Dubai Jewellery Group, the other variants of the yellow metal, 22K, 21K, 18K, and 14K, were trading at Dh484.75, Dh464.75, Dh398.50, and Dh310.75, respectively.
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The spot gold price was trading at $4,334 per ounce, up 0.11 per cent. Silver was up 0.95 per cent, trading at $66.66 per cent.
Precious metals started this week on a weaker note, Vijay Valecha, CIO of Century Financial, said. “Metals are under pressure today as renewed inflation concerns and a rise in oil buying interest, after five sessions of declines, weigh on the market,” he said.
Moreover, tensions continue to spurt in the region, with US President Donald Trump threating to “annihilate” Iran in his UN General Assembly speech on Wednesday.
However, the analyst believes that the Iranian delegation’s meeting in New York might raise hopes for diplomacy in ending tensions.
Meanwhile, Valecha said expectations of a hawkish Federal Reserve are limiting gold gains this week, even while the US dollar steadied near its strongest level in two months.
“Investors are also cautious ahead of the upcoming Trump-Xi meeting on Thursday, awaiting updates before making major moves in gold,” Valecha noted. “Therefore, gold is likely to stay within its current range unless the Middle East conflict worsens and triggers another surge in oil prices.”
Valecha said that on the technical side, gold “seems to be losing momentum as the daily Relative Strength Index (RSI) has slid below the 50 level,” adding that prices have been more or less range-bound this month, with near-term support potentially at the $4261 level from an upward-sloping trendline connecting the lows of previous troughs.
Silver also shows a similar structure, he said, with potential support around $63.36 from the lows of mid-August and September.
Source: Khaleej Times