UAE: 24K gold price plunges to Dh218.5 per gram

Gold prices fell for the second consecutive day of the New Year as 24K prices dropped to Dh218.5 at the opening of the market in the UAE on Tuesday.

In the UAE, the 24K price has dropped Dh2.5 per gram in the first two days of 2022, trading at Dh218.5 per gram on Tuesday morning. While 22K, 21K and 18K were selling at Dh205.25, Dh195.75 and Dh167.75 per gram, respectively.

Spot gold slipped to $1,804.2 per ounce at 9.20 am UAE time.

Jaffrey Halley, senior market analyst at Oanda, said gold showed, once again, how frail bullish sentiment is as recent long positions were stopped out overnight, gold falling 1.50 per cent, or $28.50 an ounce, intraday to close at $1801.50 an ounce. Some short-covering has seen it creep up to $1,804 an ounce in Asia.

“Gold’s attempts to stage a meaningful recovery remain unconvincing, with traders cutting long positions at the very first sign of trouble intra-day. This time it was the US bond market, with yields rising sharply and sending gold into an equally vicious tail-spin, unwinding its entire Christmas rally. This is not the first time we have seen this sort of price action in the last month, with golds most consistent pricing factor being its ability to disappoint bullish investors,” he said.

Halley sees gold facing resistance at $1,830 and $1,840 an ounce, although it would be a huge surprise if markets sees those levels this week. “Support lies at $1,790, followed by $1,780 an ounce. $1,790 to $1,820 is my call for the range this week,” he concluded

waheedabbas@khaleejtimes.com

• Dubai