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Analysts said that if the precious metal falls below US$1,760, it may reach US$1,700 per ounce
If the price of gold falls below the key support level of US$1,760, the price of gold may fall to US$1,700 per ounce, while the 24K price in Dubai may fall below AED 210 per gram this week because traders believe the Fed will not maintain Current currency positions, for example, commodity analysts.
Gold has gone from threatening to break through the resistance level of 1,830-35 USD, breaking below the key support level of 1,790 USD, and closed at 1,763,69 USD this week. Last week, the performance of the US manufacturing industry, the hard-line comments of Fed Richard Clarida, and an employment report led to a sharp sell-off in precious metals.
In the UAE, 24K closed at 213.5 AED per gram last week. The transaction prices of 22K, 21K and 18K are respectively 200.5 dirhams, 191.5 dirhams and 164.0 dirhams per gram.
“The surprisingly positive non-farm payrolls (NFP) report added 943,000 jobs in July, compared to the expected 870,000 jobs, which led market participants to believe that the Fed might have to tighten monetary policy earlier than expected. Century Financial chief investment officer Vijay Valecha said that this is reflected in the rebound in the dollar and U.S. Treasury yields, which is detrimental to non-yielding gold bullion.
He said that although gold is seen as a tool to hedge against inflation, the bullish data will further exacerbate concerns about premature reductions and suppress gold.
“The price of gold is trading near the key trend line support of $1,760. A break below this support level will open the door to the $1,735 and $1,700 levels. On the bright side, the metal will experience strength near the previous support level of $1,790. Resistance,” Valecha said. In the UAE market, the price of 24K gold is expected to be traded between AED 206 and AED 218.
Naeem Aslam, chief market analyst at AVA Trade, said that the U.S. non-farm payrolls (NFP) data significantly pushed down gold prices because traders believed that the Fed would not maintain the current currency position; therefore, changes are coming.
Wahid Abbas
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