UAE: Time to buy? Gold prices plunge nearly $1.36 per gram in early trade

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Gold prices plunged nearly Dh5 per gram to trade below Dh290 per gram in the UAE at the opening of the markets on Thursday, as global precious metal prices fell for the third consecutive day.

In the UAE, the 24K variant of the yellow metal was trading at Dh287.25 per gram on Thursday morning as compared to last night’s close of Dh292.0 per gram, down by Dh4.75 per gram. Similarly, 22K, 21K and 18K rates fell to Dh266.0, Dh257.5 and Dh220.7 per gram, respectively.

Globally, gold was trading at $2,373.01 per ounce, down by 0.4 per cent at 9.10am UAE time after the US Federal Reserve minutes showed that some officials were inclined to raise interest rates, pushing the yellow metal down.

Diego Colman, contributing strategist at dailyFX, said he sees the precious metal hitting $2,360 after it fell below $2,375 per ounce.

“Bulls need to defend this technical floor tenaciously to avoid a deeper retrenchment; failure to do so could lead to a move towards $2,360. If weakness persists, the focus will shift to $2,335, the 38.2 per cent Fibonacci retracement of the 2024 rally,” said Colman.

He suggested that if the investors turn bullish, then the prices could touch cross $2,400 and hit $2,420 per ounce.

“On further strength, attention is likely to gravitate towards $2,430. Overcoming this barrier may be challenging, but a breakout could potentially usher in a rally toward the all-time high located in the vicinity of $2,450,” he added.