Gold prices fall slightly in Dubai; is it a good time to buy?

Gold prices dipped slightly in the UAE on Wednesday morning but the 24K variant of the precious metal still stayed at Dh250 level at the opening of the markets.

According to Dubai Jewellery Group data, the 24K slipped Dh0.25 to Dh250.0 per gram while 22K, 21K and 18K opened at Dh231.5, Dh224.0 and Dh192.0 per per gram, respectively, on Wednesday.

Spot gold was up 0.21 per cent at $2,063.98 per ounce, as of 9.15 am UAE time. The prices retreated moderately late on Tuesday, succumbing to rising rates and the commanding resurgence of the US dollar, which climbed sharply following a poor performance last month.

Diego Colman, contributing strategist at dailyFX, said the yellow metal trended lower on Tuesday, slighting for the third straight session after prices failed to clear a key resistance in the $2,075-$2,085 region.

“If the precious metal extends its retracement in the coming days, support appears at $2,050-$2,045. Bulls must defend this floor tooth and nail – failure to do so could send it reeling towards $2,010, near the 50-day simple moving average,” said Colman.

He added that previous attempts to break through this ceiling were unsuccessful, “so history could repeat itself in a retest, but in the event of a sustained breakout, the all-time high at $2,150 would be in play again.”