Gold prices resumed their decline at the start of trading in Dubai on Thursday, following a record high earlier in the week. By 9am UAE time, 24K gold had dropped to Dh310.5 per gram, down from Dh311.25 per gram at Wednesday's market close, marking a decrease of Dh0.75 per gram. This week, the precious metal has shed Dh3 per gram after peaking at Dh313.5 on Monday evening.
Among other variants, 22K, 21K, and 18K gold also opened lower at Dh287.5, Dh278.25, and Dh238.5 per gram, respectively. Globally, spot gold was trading at $2,567.13 per ounce, up 0.31 percent, having reached $2,589 earlier in the week. The adjustment in gold prices in the morning reflects overnight global rate fluctuations.
Michael Brown, senior research strategist at Pepperstone, noted that $2,600 per ounce represents a significant near-term resistance level, primarily due to its psychological significance as a round number. "On the downside, the previous range highs at $2,530 per ounce are the key level that bears will need to break to extend any potential downward momentum," he said.
Brown added that gold's ascent has been somewhat puzzling, as it has largely ignored its traditional drivers, such as risk appetite, for most of the year. "This naturally leads to the conclusion that it is flows, likely driven by emerging market central banks, that have propelled the relentless rise and continue to fuel significant demand," he explained.
