Gold prices slip in early trade after gaining over Dh1 per gram in previous session

Gold prices in UAE

Gold prices experienced a slight decline in early trading on Tuesday following a notable gain in the previous session. The Dubai Jewellery Group reported that the price of 24K gold fell by Dh0.75 per gram compared to the previous day's close. Specifically, the 24K variant was trading at Dh263.0 per gram at the opening of the market, down from Dh263.75 per gram. Similarly, other karat variants also opened lower, with 22K, 21K, and 18K priced at Dh243.5, Dh235.75, and Dh202 per gram, respectively.

Globally, spot gold prices exhibited a marginal decrease, reaching $2,172.11 per gram at 9:22 am UAE time. Investor attention shifted towards upcoming US inflation data scheduled for release later in the week, influencing market sentiment.

Nick Cawley, a senior strategist at dailyFX, attributed the recent movements in gold prices to the remarks made by US Federal Reserve chairman Jerome Powell. Powell's optimistic stance provided momentum for gold to achieve a new all-time high before encountering selling pressure and retracing lower last week.

Analyzing the daily gold chart, Cawley noted the formation of a bullish pennant pattern, suggesting the potential for another bullish setup. The current sideways price action could evolve into a bullish flag pattern, potentially driving gold prices back above $2,200 per ounce and testing the previous all-time high near $2,225 per ounce. Cawley identified initial support levels around $2,150 per ounce, indicating a positive outlook for gold's price trajectory.

In summary, while gold prices experienced a minor decline in early trading, market analysts anticipate a bullish trend continuation based on technical patterns and the broader economic landscape. Investors remain vigilant as they await key US inflation data, which could influence future price movements in the gold market.