Gold prices in the UAE surged on Wednesday morning, reaching a three-week high as global prices of the precious metal rose. Investors reduced their expectations of more US interest rate increases, which made gold a more attractive investment.
Upon the market’s opening at 9 AM UAE time, the price of 24K gold increased by AED 2 per gram, trading at AED 234.50. Similarly, the prices of 22K, 21K, and 18K gold also started higher at AED 217.25, AED 210.25, and AED 180.25 per gram, respectively.
At 9:10 AM local time, spot gold was trading at $1,936.48 per ounce. Reuters technical analyst Wang Tao, as quoted by Khaleej Times, predicted that the price of gold could reach $1,948 per ounce if it surpasses the resistance level of $1,936 per ounce.
FxPro’s senior market analyst, Alex Kuptsikevich, noted that the recent rally had pushed the price above the long-moving average, but the short-moving average was still acting as resistance.
He pointed out that a similar trend was observed in May 2022, followed by a five-month decline before a rebound. “The situation could repeat itself this time around. The rally considerably slowed down at the end of last week,” he said.
Kuptsikevich also pointed out a significant shift in the relationship between gold and the stock market. In the recent past, gold prices have moved in tandem with the stock market, while in the spring of this year and last, gold buying surged when stocks sold off.
Via Khaleej Times