Gold prices in Dubai inch higher, gain Dh2 per gram in 24 hours

Dubai Gold Prices

Gold prices in Dubai witnessed a minor increase on Wednesday, June 19th, 2024. This follows a period of strong gains earlier this year.

Key Points:

• Price Increase: Gold prices rose by nearly Dh2 per gram across various categories (24K, 22K, 21K, 18K) compared to the previous day's closing.
• Global Market: The global gold price remained steady at around $2,327.64 per ounce.
• Softer US Data: Weaker-than-expected US retail data fueled hopes of a potential interest rate cut by the Federal Reserve, potentially impacting gold prices.

Market Analysis:

• Consolidation Phase: According to Ole Hansen, analyst at Saxo Bank, the precious metals sector is undergoing a consolidation period after experiencing significant growth earlier in 2024. This allows traders and investors to adjust to the new, higher price levels.
• Price Range: Since early April, gold prices have primarily remained within a range of $2,280 to $2,380 per ounce.
• Support Levels: A recent pause in gold purchases by the People's Bank of China might be contributing to the current price trend. Analysts like Naeem Aslam of Zaye Capital Markets predict that gold prices might test the $2,300 support level in the coming days. A break below this level could lead to a further price decline towards $2,150.

Overall, the slight increase in Dubai gold prices reflects a broader market trend of consolidation. While softer US data might influence future gold prices, analysts are cautious about predicting a definitive upward or downward movement.