Dubai: Gold prices stay stable; 24K price at Dh229.75

Dubai - Spot gold was down 0.05 per cent at $1,897.76 per ounce.

By Waheed Abbas

Published: Tue 8 Jun 2021, 9:38 AM

Gold prices were stable on Tuesday morning as US dollar strengthened as investors were waiting for the US economic data due later this week for further direction.

Spot gold was down 0.05 per cent at $1,897.76 per ounce at 9.10am UAE time.

In the UAE, Dubai Gold and Jewellery Group data showed 24K trading at Dh229.75 per gram, 22K at Dh215.75, 21K at Dh206.0 and 18K at Dh176.50 at the opening of the trade on Tuesday morning.

Naeem Aslam, chief market analyst at London-based AVA Trade, said traders will be looking at two important price levels when it comes to gold price this week, and that is the high of the last week, $1,916, and the low of the last week, $1,855.

“Only a break of these points in any direction is going to determine the further direction of the gold price. Looking at the dollar index’s price action, it seems that the gold bulls are still in control of the price for now. This means we are likely to see more upward moves for the gold price,” said Aslam.

Jeffrey Halley, OANDA senior market analyst, said the yellow metal will struggle to maintain gains above $1,900 an ounce until the US inflation data is out of the way.

Halley expects gold to trade between $1,860 to $1,900 range this week.

Margaret Yang, a strategist at DailyFX, sees US dollar having a mixed impact on the precious metal price.

“Inflation has been on the rise in recent weeks, and traders are awaiting confirmation from the US data this week on continuous strengthening in the price levels,” said Yang.

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