Gold prices continued their downward journey at the opening of the markets in Dubai on Thursday after hitting a record high earlier this week.
At 9am UAE time, the 24K fell to Dh310.5 per gram compared to Dh311.25 per gram at the close of the markets on Wednesday, down Dh0.75 per gram. The yellow metal has lost Dh3 per gram this week after hitting Dh313.5 on Monday evening.
Among the other variants, 22K, 21K and 18K opened lower at Dh287.5, Dh278.25 and Dh238.5 per gram, respectively.
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Globally, spot gold was trading at $2,567.13 per ounce, up 0.31 per cent. It hit $2,589 earlier this week. The gold prices are adjusted in the morning to align with overnight global rate fluctuation.
Michael Brown, senior research strategist at Pepperstone, said in terms of specific levels, $2,600 per ounce stands out as the most significant near-term resistance, if only due to its psychological significance as a round number.
“To the downside, the prior range highs at $2,530 an ounce are the most obvious level that the bears will need to break, in order to extend any potential downside momentum,” he said.
Brown added that gold’s rise has been something of a perplexing one, having been somewhat detached from its ‘traditional’ drivers, such as risk appetite, for most of the year. “Obviously, this leads to the natural conclusion that it is flows, likely from emerging market central banks in large part, which have driven the relentless rise higher, and which continue to fuel significant demand,” he said.