Dubai: Gold prices in Dubai recovered on Thursday morning, with the price of 24K gold rising by Dh4 to Dh498 per gram, keeping the precious metal below the Dh500 mark.
The 24K rate had closed at Dh494 per gram on Wednesday before recovering at the opening of Thursday’s markets.
22K Gold Reaches Dh461.25
Other gold categories also recorded gains on Thursday.
- 24K: Dh498 per gram
- 22K: Dh461.25 per gram
- 21K: Dh442.25 per gram
- 18K: Dh379 per gram
- 14K: Dh295.75 per gram
In international markets, spot gold rose 0.44 per cent to $4,132.50 per ounce, while silver slipped 0.02 per cent to around $60 per ounce.
Strong Dollar and Higher Yields Pressure Gold
Financial analyst Vijay Valecha, chief investment officer at Century Financial, said gold and silver continue to face pressure from a stronger US dollar and higher yields, contributing to volatile trading conditions.
He noted that the 10-year US Treasury yield remained above 5.30 per cent, with its negative relationship with gold becoming more pronounced amid fiscal concerns.
Despite the pressure, Valecha pointed to continued support from exchange-traded fund (ETF) flows.
Gold ETFs added around 81,000 troy ounces to their holdings in the latest trading session, taking net purchases for the year to 2.19 million ounces.
Central bank buying has also provided support, with central banks adding 39 tonnes of gold in August, compared with July’s level.
Gold Faces Key Resistance Levels
From a technical perspective, Valecha identified $4,100-$4,120 per ounce as an important support zone for gold.
The level also aligns with an ascending trendline from June lows, while secondary support is around $4,050.
On the upside, resistance is expected around $4,180, followed by the $4,220-$4,250 range.
For silver, the $60-$60.20 level remains a key support area, while resistance is seen around $61.80-$62, followed by $63.
