Time to buy: 24K gold price plunges to Dh219 in Dubai
Spot gold fell 0.03% to $1,808.46 per ounce at 9.10 am UAE time.
Gold prices fell on Tuesday morning and were hovering around a two-week low as the US dollar gained after President Joe Biden’s nomination of Federal Reserve chairman Jerome Powell for the second term.
Spot gold fell 0.03 per cent to $1,808.46 per ounce at 9.10 am UAE time.
In the UAE, 24K fell to Dh219.0 per gram at the opening of the market, falling Dh3 from Mondays’ close and Dh4.75 from Monday’s opening price.
According to the Dubai Gold and Jewellery Group’s data update on Tuesday morning, 22K was trading at Dh205.75, 21K at Dh196.25 and 18K at Dh168.25.
Jeffrey Halley, senior market analyst for Asia-Pacific at Oanda, said following the re-nomination of Jerome Powell overnight, the Fed taper trade reignited and rising US long-dated yields reasserted their dominance once again over the gold price.
“That led to a sharp fall by gold and the critical $1,832 to $1,835 an ounce zone failed. Once again gold has whipsawed the bulls in brutal fashion. Gold slumping by over $40, or 2.25 per cent to $1,805 an ounce,” said Halley.
As a result of having been burnt so badly, he said, even if the US yields retreat over the next few sessions before the Thanksgiving holiday, investors are likely to be much more cautious at re-entering long positions.
“Momentum will be muted and that means that the $1,835 to $1,850 region will cap gains this week, although I feel it unlikely, we will even get that far. If US yields remain firm this week, gold will be vulnerable to further losses through $1,800, said Halley.