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Gold prices in Dubai fell Dh3.25 per cent on Monday morning, with the precious metal down by almost 25 per cent from the January highs and continuing to trade below Dh500 for the second consecutive week.
The 24K variant of the precious metal was trading at Dh489.75 per gram at the opening of markets on Monday, August 3, down from Dh495.50 at the close of the markets on Friday.
The other variants, 22K, 21K, 18K, and 14K, were trading at Dh453.50, Dh435.00, Dh372.75, and Dh290.75, respectively.
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Globally, the spot gold price was trading at $4,064,34 per ounce, down 0.31 per cent. Silver was down 0.39 per cent, trading at $58.35 per ounce.
Analysts noted the yellow metal is likely to remain under pressure, with higher energy prices increasing the likelihood that rates will stay higher for longer.
The precious metal has mostly stayed within a range of $3,945 to $4,160 over the past month, has not able to break above the immediate resistance at $4,110, CIO of Century Financial, Vijay Valecha, said.
“The daily 14-period RSI has also not crossed the 50 level since April, indicating a lack of positive momentum. In today’s session, a break below its recent support at $4,022 may trigger testing of the lows at $3,945, followed by $3,900. Conversely, only a decisive breakout and close above $ 4,160 would suggest increasing bullish momentum,” he said.
In that same vein, silver has remained range-bound over the past month between $55.60 and $63.25, of which a break below its recent support at $57.14 may lead to testing the range low at $ 55.60, Valecha said. Conversely, a breakout and close above $63.25 would indicate bullish momentum building in the metal.
He added that gold is also down by almost 25 per cent from the January highs. Rate hikes are also expected to increase pressure on non-yielding metals, making them less attractive. “According to CME Fedwatch, markets still price in an 84 per cent probability of a rate hike by the end of the year,” Valecha explained.
