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Dubai: 24K gold prices likely to trade between Dh210 and Dh225 this week

Dubai - The precious metal was seen touching $1,775 an ounce but will regain some of the losses later this week.

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Gold prices for 24K are likely to trade between Dh210 and Dh225 per gram in Dubai this week, according to commodity analysts.

The precious metal has had a very choppy last week closing at $1,802.3 per ounce, down by 0.29 per cent. In the UAE, 24K precious metal closed at Dh218.25 per gram, 22K at Dh205.0, 21K at Dh195.75 and 18K at Dh167.75 per gram.

“Prices have consolidated between the narrow range of $1,780 and $1,850 an ounce over the last 20-day period. Prices need to show a sharp rebound for the 50-day simple moving average to show some momentum. For UAE markets, 24K price is expected to trade in the range between Dh210 and Dh225 this week,” said Vijay Valecha, chief investment officer at Century Financial.

Although precious metal has traded in a very tight range, the volatility is fast and around strong support zones, added Valecha.

“Concern is growing very strongly of the high inflation rate, which is a factor supporting gold prices. Meanwhile, upbeat corporate earnings reports on both sides of the Atlantic and stimulus optimism refuelled reflated trades, lifting the Treasury yields at gold’s expense. Gold stands currently on the edge of a breakout on either side,” said the chief investment officer of Century Financial.

Rashad Hajiyev, founder and senior analyst at RM Capital, forecast that the yellow metal will touch $1,775 but will regain some of the losses later.

“As open interest on the Comex for gold August 2021 futures expires at July-end, expect one more sharp pullback towards $1,775-$1,785 during the second half of this week followed by a quick recovery,” said Hajiyev.

• Dubai