Dubai Gold Prices Ease Amid Inflation Concerns and Rising Oil Demand
Dubai's gold market saw prices ease on Wednesday amid concerns over inflation and rising oil demand. The 24K variant of gold was trading at Dh523.50 per gram, down from Dh526 per gram at the close of markets a day earlier.
Data from the Dubai Jewellery Group showed other variants of gold, including 22K, 21K, 18K, and 14K, were trading at Dh484.75, Dh464.75, Dh398.50, and Dh310.75 per gram respectively.
Vijay Valecha, CIO of Century Financial, attributed the decline to renewed inflation concerns and a rise in oil buying interest. He also noted that expectations of a hawkish Federal Reserve were limiting gold gains this week, even as the US dollar steadied near its strongest level in two months.
Looking ahead, Valecha predicted that gold would likely stay within its current range unless the Middle East conflict worsened and triggered another surge in oil prices. On a technical basis, he observed that gold seemed to be losing momentum, with the daily Relative Strength Index (RSI) having slid below the 50 level.
Valecha also pointed out that silver's structure was similar, with potential support around $63.36 from the lows of mid-August and September.