UAE: Gold price rally continues in Dubai; 24K crosses Dh240-per-gram mark

On the technical front, expert says prices of the yellow metal are in a strong uptrend and are currently testing the $1,980 level


Waheed Abbas

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Published: Thu 20 Jul 2023, 9:44 AM

Rally in gold prices continued in the UAE on Thursday morning, hitting over a nine-week high as investors expected that the US Federal Reserve would soon pause interest rate hike.

The 24K variant of the precious metal jumped Dh1 per gram at the opening of the markets on Thursday to cross Dh240.

According to Dubai Jewellery Group data, the 24K was trading at Dh240.25 per gram on Thursday morning, while 22K, 21K and 18K were trading at Dh222.5, Dh215.25 and Dh184.5 per gram, respectively, at 9am, UAE time.

Globally, spot gold was up 0.34 per cent at $1,984.39 per ounce by 9.10am UAE time.

[Editor's Note: For real-time gold rates, click the widget below or visit KT's dedicated Trading News page here.]

Economists polled by Reuters expect the likely July rate hike to be the Fed’s last increase in the current tightening cycle as lowering rates makes the bullion more attractive as it’s a non-yielding metal.

Vijay Valecha, chief investment officer, Century Financial, said investors will further keep an eye out for initial jobless claims data on Thursday for the week of July 15, forecast to rise to 242,000 from a seasonally adjusted 237,000.

On the technical front, Valecha said gold prices are in a strong uptrend and are currently testing the $1,980 level.

“The next resistance levels are $2,007 followed by $2,023. On the downside support levels are $1,951 and $1,933,” he said.


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