Gold Prices are expected to trade sideways with a support level seen at $1,910 an ounce for the precious metal in the week ahead.
Analysts believe that the yellow metal’s future moves will largely depend on how rapidly the US Federal Reserve pursues further rate hikes, or whether it errs on the side of caution.
Gold prices closed at $1,921.49 per ounce on the weekend. In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh232.75 per gram, 22K at Dh218.75, 21K at Dh208.75 and 18K at Dh178.75.
Vijay Valecha, chief investment officer at Century Financial, said risk sentiments have taken a hit ever since US Secretary of State Antony Blinken said that Russia may be contemplating a chemical-weapons attack on Ukraine.
“Any further grim developments on the same can spur demand for safe-havens, and risk-sensitive assets will face the heat of souring sentiment again. Meanwhile, initial data compiled by Bloomberg showed an addition of 11 tons to gold-backed exchange-traded funds mid last week with the total holdings in gold-backed ETFs rising for the 14th straight day to 103.88 million ounces, the highest since March 2021,” he said.
Naeem Aslam, chief market analyst at Ava Trade, said for bulls to be fully confident about the gold price, they need to see two things: firstly, that the price needs to stay above the $1,900-price mark, and secondly, it needs to break above the $2,000 price level.
Despite price dropping from $1,940 per ounce, Century Financial CIO sees gold’s broader outlook staying constructive and price may continue to see some sideways price action.
“Technically, if the metal manages to breach above $1,940 levels, it can edge higher to $1,958, a move above which will allow bulls to target $1,975-85 region. Support is seen in the $1,910-$1,920 region, a break lower could threaten a steeper correction to $1,880. In UAE, 24K price is expected to trade between Dh226 and Dh238 in the week ahead,” he added.
The Indian rupee is likely to fall further after hitting a record low of 80.70 against the dollar or 21.95 against the dirham on Thursday
Forex traders say the strength of the US dollar in the overseas market, and crude oil prices, weighed on the record low
The Fed is seen raising its benchmark lending rate by 75 basis points (bps) to tame persistently high inflation, although some traders expect a full percentage point increase
Sales will pick up in the coming weeks on the eve of Diwali, which will be celebrated in October
Soaring prices have pushed annual inflation to a 40-year high, inflicting pain on American consumers and businesses, despite the drop in gasoline prices