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Global equities hit a two-year low while the dollar index reaches its highest level in two decades, putting downward pressure on oil
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UAE gold prices: 24K seen trading between Dh226 and Dh238
Precious metal likely to trade sideways in the coming week
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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.
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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.
-waheedabbas@khaleejtimes.com
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