Gold prices in the UAE dropped as markets opened on Wednesday, following a week-high on Tuesday. According to data from the Dubai Jewellery Group, the 24K gold variant was trading at Dh233.75 per gram at 9 am local time, down from the previous night’s close of Dh234.5 per gram. Meanwhile, 22K, 21K, and 18K opened at Dh216.5, Dh209.5, and Dh179.5 per gram, respectively.
On a global scale, spot gold showed a slight 0.05% decrease, reaching $1,930.46 per ounce by 9:25 am UAE time. Investors and traders were eagerly awaiting the policy decision of the US Federal Reserve, seeking insights into the economic outlook and potential monetary tightening.
Vijay Valecha, Chief Investment Officer at Century Financial, noted that gold traded above $1,930 in anticipation of the Federal Reserve meeting. While it’s widely expected that interest rates will remain unchanged, attention is focused on the Fed’s stance on inflation and future policy directions.
Valecha added, “Technically, the current gold price is trading above the 61.8% Fibonacci retracement level of the downtrend, placing it at $1,934.5. Initial resistance levels could be around $1,940, followed by a higher resistance level at $1,947.5. On the other hand, support levels are expected at $1,924, aligned with the 200-day Simple Moving Average (SMA), and further down at $1,918.”