On Thursday, the price of 24K gold in Dubai opened at Dh278.25 per gram, up from Dh276.25 per gram the previous day. Other types like 22K, 21K, and 18K were also trading higher at Dh257.5, Dh249.25, and Dh213.75 per gram respectively.
Globally, spot gold reached $2,299.81 per ounce at 9:10 am UAE time after comments from US Federal Reserve Chairman Jerome Powell. Powell stated that recent job gains and inflation readings won’t significantly impact the central bank’s interest rate strategy.
Gold briefly touched the $2,300 level around 5 am UAE time on Thursday. US gold futures were trading higher at $2,320.5 per ounce.
Vijay Valecha, Chief Investment Officer at Century Financial, noted that Powell’s speech was the main focus for investors. They were also monitoring PMI and Non-Farm Employment data.
From a technical perspective, Valecha mentioned that gold is facing downward pressure, approaching a critical support level at $2,260.00. Maintaining above this level is crucial for sustaining bullish momentum. However, if breached, it could lead to further declines towards $2,205.70. Valecha pointed out that the negative stance of the Stochastic indicator contributes to the prevailing downward pressure. Nevertheless, a shift towards positive momentum could support a resumption of the bullish trend, targeting levels at $2,300.00 and $2,320.00 next.
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