Gold prices rose at the opening of the markets on the first trading day of the week in Dubai.
According to Dubai Jewellery Group data, the 24K variant of the yellow opened higher at Dh289.75 per gram at 9 am on Monday compared to last week’s close of Dh289 per gram. Among the other variants of the yellow metal, 22K, 21K and 18K opened at Dh268.25, Dh259.75 and Dh222.75 per gram, respectively.
Globally, spot gold was steady at $2,395.37 per ounce at 9.15 am UAE time.
The yellow metal approached to second consecutive week of declines, falling to $2,372 per troy ounce on Friday morning, $111 below its high on July 17th.
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“Gold found buying support on Thursday and early on Friday at the crossover of the 50-day moving average near $2,360. This also coincides with the consolidation centre of the repeated pullbacks from April to June. This means that the decline in this area is well within the framework of a correction, and it is not yet possible to claim that the gold rally has broken and that a top has been established for many months and years to come,” said Alex Kuptsikevich, senior market analyst at the FxPro.
“Therefore, there are two possible lines of defence for gold in the short term: $2,360 and $2,320. It is worth keeping a close eye on the price action around these levels. If gold breaks through them with a strong move, we should be prepared for a prolonged decline. If the buyers manage to break the trend near one of these lines, the price may well continue to rise on buyers’ encouragement,” he added.
Gold’s ability to avoid a sell-off in June after breaking the 50-day probably helped it make new highs in July.
“This story could be repeated if the financial markets avoid another deep sell-off and return to growth even without an official correction,” added Kuptsikevich.