Market Opening Prices
The price of gold experienced a slight decline when the market opened in Dubai on Friday. As of 9 am UAE time, the price of 22K gold has been set at Dh283.25 per gram. This represents a marginal drop compared to the closing price on Thursday, which was fixed at Dh283.75 per gram.
PC: Gulf News
Other Variants of Gold
Apart from 24K, the price of other variants of gold decreased in value. The 22K gold was quoting at a price of Dh281.75 per gram, while the price of 21K gold was quoting at Dh272.75 per gram. All this while, the price of 18K gold started at a value of Dh233.75 per gram.
Global Gold Price Trends
On the global front, too, gold price was sullied. At 9:07 am UAE time, gold traded at $2,513.59 per ounce in the international market, down 0.23 percent.
Expert Insights
Vijay Valecha, chief investment officer at Century Financial, said that on the technical front, gold held pretty well above the level of US$2,500. If this continues and sustains upward, then a breakout might happen above the current rising wedge pattern, indicating further upside momentum. However, the currency is in a consolidation phase and oscillates between $2,530 and $2,503, Valecha said. He also added that in case of a breakdown below $2,500, the bears may be attracted towards the price. In such a situation, the immediate support would come at $2,485.63, while resistance would be at $2,530.
Market Analysis
Michael Brown, a senior research strategist at Pepperstone, said the spot gold price has barely changed for the better part of this week. For the most part, the precious metal clung to the $2,500 per ounce level with an effect of tending to consolidate just above this particular level. This price range has attracted a notable sub-root buying interest as the market has seen gold repeatedly test this level. Brown does not find this trend to be out of the ordinary considering there were no major macroeconomic data released this week. He further added that the period of quiet in the markets would persist till the release of next Friday’s U.S. employment report for August.
Conclusion
In a nutshell, the prices of Dubai’s gold market have moved a little downward. In fact, Dubai is following the world trend. As experts say, while the metal retains above $2,500, it is still within the consolidation phase for upward momentum or bearish pressure. Market stability can be retained only up to the time fresh economic data crops up.
