Gold prices in the UAE fell Dh4.5 at the market open on Wednesday, reaching their lowest level since mid-March.
Data from the Dubai Jewellery Group shows that the 24K gold price was trading at Dh537.75. Throughout April and May, the precious metal has remained steady within the Dh541 to Dh588 range.
The other variants – 22K, 21K, 18K and 14K – were trading at Dh498, Dh477.50, Dh409.25 and Dh319.25 per gram, respectively, on Monday morning.
Globally, spot gold was trading at $4,466.56 (Dh16,400.57), while silver saw a slight decline, trading at $74.36 (Dh273.23).
Attention remains centred on energy prices, inflation expectations, bond yields and the dollar from a trader’s perspective, said Ole Hansen, head of commodity strategy at Saxo Bank.
“Technically, gold has, in the very short term, settled into a narrow $4,500 to $4,590 range, with prices compressing around key Fibonacci retracement levels,” he explained.
Fibonacci retracement levels are used by traders to place entry orders, set stop-loss levels and determine price targets, according to Investopedia.
“The broader setup remains constrained by two important moving averages. The 200-day moving average, currently near $4,355, represents the next major support level, while the 50-day moving average around $4,705 continues to cap upside attempts,” Hansen added. (Khaleej Times)