Dubai: Gold prices jump in early trade

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Gold prices in the UAE jumped one-and-a-half dirham per gram at the opening of the markets on Tuesday.

The Dubai Jewellery Group data showed a 24K variant of the yellow metal trading at Dh273.25 per gram on Tuesday morning as compared to Dh271.75 per gram at the close of the markets on Monday.

Among the other variants of the yellow metal, 22K opened at Dh253.0, 21K at Dh245.0 and 18K at Dh210.0 per gram.

Globally, spot gold was trading at $2,255.84 per ounce at 9.26 am UAE time, up 0.30 per cent.

The precious metal hit a record high on Monday, as 24K jumped Dh3.25 per gram to Dh273.75 per gram on Monday morning.

Nick Cawley, senior strategist at dailyFX, said the daily gold chart shows a bullish technical pattern is nearly fully formed so a breakout is due soon. A Bullish Pennant pattern is a short-term consolidation pattern that is formed by support and resistance merging.

IG client data showed that retail investors are betting against gold. Currently, 55.46 per cent of traders hold net-short positions, resulting in a 1.25 to 1 short-to-long ratio. While this bearish positioning has remained largely unchanged since yesterday, it has increased by 6.15 per cent from last week. Conversely, net-long positions have ticked up 4.14 per cent since yesterday, even with a week-over-week decrease of 9.23 per cent.