Gold Prices in UAE Markets Experience Fluctuations

At the commencement of Tuesday’s trading session, gold prices in the UAE declined by Dh0.75 per gram, following a noteworthy increase of Dh1.25 the previous day.

Specifics of the Market Movement:

According to data from the Dubai Jewellery Group, the 24K variant of gold opened trading at Dh263.0 per gram on Tuesday, a decrease from the closing price of Dh263.75 per gram on Monday. 

Other variants, such as 22K, 21K, and 18K, also exhibited lower opening prices at Dh243.5, Dh235.75, and Dh202 per gram, respectively.

On a global scale, spot gold registered a slight decline, reaching $2,172.11 per gram at 9.22 am UAE time. Investor attention shifted towards upcoming US inflation data scheduled for later in the week.

Analyst Insights on Market Dynamics:

Senior strategist at dailyFX, Nick Cawley, attributed the recent fluctuations in gold prices to the remarks made by US Federal Reserve chairman Jerome Powell. 

Despite reaching a new all-time high last week, gold experienced downward pressure as sellers entered the market.

Technical Analysis and Future Outlook:

Cawley highlighted the formation of a bullish pennant pattern on the daily gold chart, indicating the potential for another bullish set-up. 

He suggested that the current sideways price action might transform into a bullish flag pattern, projecting a resurgence in gold prices above $2,200 an ounce, with a test of the all-time high near $2,225 an ounce. Cawley also identified initial support levels around $2,150 per ounce.