UAE: Gold prices drop as profit-taking continues among global investors

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Gold prices fell by nearly Dh1 per gram in the UAE on Thursday morning as profit-taking at the international level pushed the prices lower.

In the UAE, 24K was trading at Dh280.25 per gram, while 22K, 21K and 18K also opened lower at Dh259.5, Dh251.25 and Dh215.25 per gram, respectively.

Spot gold was steady at $2,317.41 per ounce after staying in negative territory most of the time earlier in the day.

Mohamed Hashad, chief market strategist, Noor Capital, said gold prices have recently found strong support around the $2,290 mark, leading to a notable rebound propelled by the weakening US dollar, which followed the release of adverse economic data.

He added that the yellow metal is facing “negative pressure” from the simple moving averages and corroborating bearish signals.

“These indicators suggest that the ongoing downward correction may continue. The persistence below the pivotal support-turned-resistance level at $2,325 reinforces the likelihood of a resumption in the downward corrective trend. Targets for this downtrend lie at $2,300 and $2,260, serving as crucial waypoints,” said Hashad.

However, a reversal scenario is possible if gold reclaims stability above $2,325, which could mitigate losses and initiate a retest towards $2,365-$2,360. It is important to note that geopolitical tensions, a key factor in gold price movements, are still high,” he added.