Gold prices opened lower on Tuesday morning after rising sharply on Monday.
The Dubai Jewellery Group data showed 24K trading at Dh246.0 per gram at the opening of the markets on Tuesday as compared to last night’s close of Dh246.75 per gram. Among the other variants of the yellow metal, 22K was selling at Dh227.75 per gram, 21K at Dh220.5 and 18K at Dh189.0.
On Monday, 24K prices rose Dh1.25 per gram as global prices firmed on growing concerns over the Middle East.
Globally, spot gold was trading slightly higher at $2,031.85 an ounce by 9.13am UAE time as traders awaited the US central bank’s decision on key policy rates and remarks from chairman Jerome Powell.
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Vijay Valecha, chief investment officer, Century Financial, said yellow metal surged on Monday after facing a downward trend last week, as market participants reassessed the possibility of the Fed cutting the interest rates in the March 2024 meeting, adding on, hedge fund managers worldwide, closed their long positions in gold, putting further pressure on the yellow metal, however, are unwilling to take short positions.
“Looking ahead, market participants are maintaining their cautious stance, as though the inflation numbers tick lower, the US economy grew by a robust 3.3 per cent versus analyst expectation of 2 per cent, and a robust labour market,” he said.
From a technical perspective, he added that the gold price provides calm positive trades to move away from the $2,016.90 level, motivated by the positive overlapping signal provided by stochastic, waiting for more rise and visiting the $2,040 mark as the next main station on an intraday basis.
“Therefore, the bullish trend scenario will remain valid and active for the upcoming period,” he added.