Gold prices in Dubai continued to climb on Wednesday morning, marking a steady momentum as the 24K variant edges closer to the Dh500-per-gram mark.
The 24K variant was trading at Dh496 per gram on Wednesday’s market open, up from Dh492.25 at the close of the markets on Tuesday.
The other variants of the yellow metal, 22K, 21K, 18K, and 14K, were also trading higher at Dh459.25, Dh440.25, Dh377.50, and Dh294.25, respectively.
The spot gold price was trading at $4,134 per ounce, up 0.96 per cent. Silver was trading at $60.73, up 1.18 per cent.
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Analysts say that gold sentiment is improving following weeks of underperformance.
However, a lack of upside momentum is keeping prices from making a major move higher, said Vijay Valecha of Century Financial.
“Leading banks have not revised their long-term bullish forecasts, predicting gold will recover to $4,500-$5,000 an ounce in the next several quarters,” he explained.
“However, it is unlikely that the market will see a strong gold rally on the back of official demand alone. While central bank gold purchases remain robust, they are far below the record purchases of 2024. A true gold rally is more likely to come when the market prices a more accommodative Fed.”
Valecha said that the focus in the near term will be on US job openings, with any relative softness in the labour market proving to be a boon for gold price. On the other hand, a resilient labour market could “keep the Fed from easing policy, which would keep the dollar strong and pressure gold prices.”
He added that gold remains in a consolidating pattern “as buyers attempt to push prices back above the $4,150 level, but prices continue to fail to make higher highs. Buyers have successfully defended $4,000 support for several sessions in a row, and have managed to lift prices back toward $4,060. A break above the $4,100 level would be required to push the market higher, but a failure to hold above $4,000 would open up the next level of support at $3,960.”
