UAE: Gold prices drop at the start of the week
Gold prices decreased by half a dirham per gram at the opening of the markets in UAE on Monday (April 29).
The Dubai Jewellery Group data showed 24K trading at Dh282.5 per gram on Monday morning as compared to Dh283.0 per gram at the close of the markets over the weekend. Similar 22K, 21K and 18K also opened lower at Dh261.5, Dh253.25 and Dh217.0 per gram, respectively.
Spot gold was slightly down at $2,335.13 per gram on Monday at 9.14 am UAE time.
Ole Hansen, Head of Commodity Strategy, Saxo Bank, said gold suffered a long overdue but so far modest setback, with momentum traders instead switching their attention to copper, which reached a fresh cycle high.
“Gold’s aggressive rally since the mid-February low has been challenged,with bullion suffering a long overdue and relatively aggressive but healthy correction. This correction will help determine the actual level of underlying demand besides momentum and managed money accounts, which generally trade with a short-term focus. It will also reduce longs should the technical and/or fundamental picture change,” said Hansen.
Having rallied by almost $450 from the mid-February low, he said the correction currently unfolding has yet to be strong enough to challenge the traders’ overall belief in higher prices.
Source: khaleejtimes