Gold prices experienced a slight decline at the start of trading in Dubai on Wednesday, yet remained above the Dh300 mark per gram. By 9am UAE time, the 24K gold variant had fallen to Dh304.0 per gram, a decrease from Dh304.25 per gram at Tuesday's market close. Meanwhile, the 22K, 21K, and 18K variants were trading at Dh281.5, Dh272.5, and Dh233.75 per gram, respectively.
On a global scale, gold was trading at $2,509.76 per ounce, reflecting a 0.6 percent decrease. Vijay Valecha, Chief Investment Officer at Century Financial, attributed the dip in gold prices to the averted full-scale conflict between Israel and Hezbollah. He noted, "However, this relief is anticipated to be temporary due to persisting concerns and uncertainties. The ongoing disputes between Israel and both Hezbollah in Lebanon and Hamas in Gaza are unresolved, with no foreseeable end... This ongoing uncertainty continues to bolster a bullish perspective on gold. Moreover, potential changes in US monetary policy also support the precious metal."
From a technical perspective, Valecha observed that gold recently broke out of a wedge pattern, suggesting a potential bullish trend. "Looking ahead, gold faces downward pressure if it stays below $2,516.7. Should prices remain under this threshold, the outlook is bearish, with immediate support at $2,501.6. In contrast, if gold surpasses $2,516.7, it could re-enter a bullish trend, aiming for resistance at $2,529," he concluded.
