Dubai: Gold slightly up; 24K trades at Dh220.75

Gold prices were steady on Tuesday morning and analysts expect yellow metal has a realistic chance of advancing further in the day ahead.

Spot gold was trading at $1,823.59 per ounce at 9.10am UAE time.

In the UAE, 24K was trading at Dh220.75 per gram on Tuesday morning, up Dh0.25 from Monday’s close. While 22K, 21K and 18K opened at Dh207.5, Dh198.0 and Dh169.75 per gram at the opening of the market on Tuesday.

Jeffrey Halley, senior market analyst for the Asia Pacific at Oanda, said a lower US Dollar overnight helped gold advance slightly higher, enabling it to hold on to its substantial gains from the Friday session.

“With US bond yields trading on the heavy side and seemingly set to range in the days ahead, and with a downside US dollar correction underway, gold now has a realistic chance of advancing further still in the days ahead. If gold can break and hold above its well-defined resistance zone between $1,832 and $1,835 an ounce, it will trigger an inverse head-and-shoulders pattern that would target a return to $2,000 an ounce,” said Halley.

“Support is at $1,800 and $1,785 an ounce, although I suspect that a fall through $1,810 will be enough to trigger a mad fast-money dash for the exit door,” he added.

waheedabbas@khaleejtimes.com

• Dubai