KT Photo: Shihab
Gold prices in Dubai experienced a significant drop on Monday, with the yellow metal falling by more than Dh3 per gram. This decline mirrored a global trend, where gold prices dropped over one per cent in early trading on the first day of the week. By 9am UAE time, the 24K variant of gold had fallen to Dh318.25 per gram, a decrease from Dh321.5 per gram at the weekend close, marking a Dh3.25 per gram reduction. Other variants also saw declines, with 22K falling to Dh294.5, 21K to Dh285.25, and 18K to Dh244.5 per gram.
Globally, spot gold was trading at $2,627.91 per ounce, down 0.91 per cent at 9.10am UAE time. This drop followed a four per cent fall at the start of last week due to the ceasefire between Lebanon and Israel, although prices later recovered. The gradual rally from Tuesday to Friday indicated cautious buying, suggesting sustained interest despite historically high levels.
Alex Kuptsikevich, chief market analyst at FxPro, noted that the price found support at $2,600 per ounce, a level that had also provided stability in late September and early October. He highlighted that the sharp dip signals a shift in control to the bears, with the price dropping below the 50-day moving average. Kuptsikevich emphasized that a further drop below $2,600 could target the month's lows at $2,540, potentially leading the market towards $2,400. In the long term, this could result in a move towards the $2,000 per ounce area.
Conversely, a weekly and monthly close above $2,670 could signal further gains, marking a return to levels above the 50-day moving average.
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