Gold Prices Drop Dh1 per Gram in Dubai as Profit-Taking Occurs

gold prices Dubai

 Gold prices in the UAE witnessed a decline of Dh1 per gram in early trade on Friday morning, following a record high in the previous session. The Dubai Jewellery Group reported that 24K gold was trading at Dh275.75 per gram at the opening of the markets, compared to Dh276.75 per gram at the previous close. This decrease in price reflects a trend of profit-taking after reaching recent highs.

The decline in gold prices is part of a broader pattern in the market, according to experts. Alex Kuptsikevich, senior market analyst at FxPro, noted that gold briefly exceeded $2,300 per ounce on Thursday before retreating later in the day. He emphasized that this price level represents a significant psychological barrier for traders and investors.

Kuptsikevich explained that the recent rise in gold prices prompted profit-taking, as traders sought to capitalize on the gains. This behavior is typical in financial markets, where investors often sell their assets to lock in profits after a period of rapid appreciation. As a result, gold prices cooled somewhat, providing an opportunity for investors to reassess the market dynamics.

Analyzing the technical indicators, Kuptsikevich highlighted the importance of monitoring key levels of support and resistance in the gold market. He noted that while gold has shown strength in recent trading sessions, it is approaching levels of resistance seen in early March. This suggests that further upside may be limited in the near term, especially if economic data supports the US dollar.

The balance of power in the gold market appears to favor bears, according to Kuptsikevich. This means that sellers may have the upper hand in driving prices lower, particularly if there is negative sentiment or fundamental factors that weigh on the precious metal.

Looking ahead, Kuptsikevich advised investors to pay close attention to labor market data, as it could influence the direction of gold prices. Strong economic indicators, such as robust manufacturing PMIs and wage growth, could bolster the US dollar and potentially dampen demand for gold as a safe-haven asset.

In conclusion, the decline in gold prices in Dubai reflects a broader trend of profit-taking and market consolidation after recent highs. While the precious metal remains resilient, investors should remain cautious and monitor key technical and fundamental factors to navigate the evolving market conditions.