UAE: Gold prices jump Dh2 per gram, hitting nearly 3-week high

Wang Tao, technical analyst at Reuters, said the yellow metal could rise to $1,948 an ounce after it has surpassed a resistance level of $1,936 per ounce.

Alex Kuptsikevich, senior market analyst at FxPro, said the rally in recent days has brought the price back above the long-moving average, but the short-moving average is effectively acting as resistance.

“The last time we saw this dynamic was in May last year, followed by five months of declines before a reversal to the upside. The situation could repeat itself this time around. At the end of last week, the rally slowed considerably,” he said.

It is worth noting that gold has temporarily returned to a direct correlation with the equity market. In contrast, in the spring of this year and last, it was the other way round: equity sell-offs were accompanied by frenzied gold buying, added Kuptsikevich.

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