Gold prices continued their upward trend, trading higher at the opening of the markets in the UAE on Wednesday.

The Dubai Jewellery Group data showed 24K was trading at Dh245.75 per gram on Wednesday morning as compared to Dh244.5 on Tuesday morning. Among the other variants of the yellow metal, 22K opened higher at Dh227.5, 21K at Dh220.25 and 18K at Dh188.75 per gram.

Globally, gold prices rose on Wednesday, helped by a weaker dollar and safe-haven buying, ahead of the minutes from the US central bank's latest policy meeting.

Spot gold rose 0.3 per cent at $2,030.38 per ounce at 9.17am UAE time.

Alex Kuptsikevich, senior market analyst at FxPro, said gold rallied and recovered almost all the losses suffered the week before on the back of the inflation report.

“Gold's ability to rally suggests continued domestic demand, as some investors are clearly rushing to buy back any losses. At the same time, however, we note that since the beginning of the year, gold has been characterised by solid selloffs on the news, forming a smooth downtrend. In the context of this downtrend, a rise to $2040-2045, which is the upper boundary of the bearish range, looks quite acceptable,” he said.

Kuptsikevich added that the area around $2,035 - the highs of two weeks ago - also appears to be a crucial intermediate level.

“Confident buying from this level would be the first important signal that the recent correction is over and that gold is ready to make a fresh assault on the highs,” he said.

Also, much more important, however, will be the behaviour of gold as it approaches the $2,050 level, where the reversal of the decline in late January took place. Consolidation at this level would confirm the breakdown of the downtrend and set the stage for a move towards $2,100 and the subsequent renewal of historic highs.

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