Gold Prices Edge Up in UAE Markets

Gold prices experienced a slight uptick at the beginning of the markets in the UAE on Wednesday, reflecting global trends and market sentiments.

Local Market Data:

According to data from the Dubai Jewellery Group, the 24K variant of gold was trading at Dh261.25 per gram at the morning opening, compared to Dh260.5 per gram at the previous night’s close, marking an increase of Dh0.75 per gram. Other variants also saw gains, with 22K opening higher at Dh241.75, 21K at Dh234.0, and 18K at Dh200.75.

Global Outlook:

Globally, spot gold maintained stability at $2,157.31 per ounce at 9.27 am UAE time, as investors awaited the decision of the US Federal Reserve regarding interest rates and remarks from Fed chairman Jerome Power later in the day.

Factors Influencing Gold Prices:

Vijay Valecha, chief acquisition officer at Century Financial, highlighted that expectations of sustained higher interest rates from the Fed have limited the upside potential for gold. Elevated Treasury yields have also acted as a deterrent.

Technical Analysis and Future Expectations:

From a technical perspective, Valecha suggested that further decline in gold prices may find support around the $2,145 level, potentially extending toward $2,128. 

However, he cautioned that a breach of the immediate barrier at $2,175 could challenge the previous record peak near the $2,195 area reached last week.