Dubai: Gold prices drop slightly; 22K at Dh208.0 per gram

Spot gold fell 0.2 per cent to $1,827.05 per ounce by 9.10 am UAE time

Photo: File

Waheed Abbas

Published: Wed 10 Nov 2021, 9:45 AM

Gold prices fell from a more than two-month high on Wednesday morning, hit by the gains in the US dollar.

Spot gold fell 0.2 per cent to $1,827.05 per ounce by 9.10 am UAE time.

In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh221.25 per gram at the opening of the market. While 22K, 21K and 18K were trading at Dh208.0, Dh198.25 and Dh170.0 per gram, respectively.

Jeffrey Halley, senior market analyst for the Asia Pacific at Oanda, said gold’s story still looks inversely correlated to US yield and the US dollar. “If the (US) inflation story held water, then surely US yields would be higher. Nevertheless, gold’s price action remains constructive, and it has managed to hold onto its gains just below the major zone of longer-term resistance at $1,832 to $1,835 an ounce,” said Halley.

The dollar index edged up 0.1 per cent on Wednesday, raising gold's cost to buyers holding other currencies.

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“If gold can break and hold above $1,835 an ounce on a daily closing basis, it will trigger an inverse head-and-shoulders pattern that would target a return to $2,000 an ounce. Support is at $1,800 and $1,785 an ounce, although I suspect that a fall through $1,810 will be enough to trigger nervous longs to exit,” he added.

Daniel McCarthy, strategist at Daily FX, said a potentially robust outlook for the US inflation may not have the levity for the yellow metal.

“The past year has seen inflation run rampant, and yet gold is little changed. The inflationary impact for gold might be felt through the impacts on the US dollar and yields,” said McCarthy.

-waheedabbas@khaleejtimes.com