Early Thursday morning trading saw gold prices rise by around Dh6 per gram as the precious metal recovered some of the losses from the previous several days and surpassed $4,100 per ounce. According to data from the Dubai Jewellery Group, 24K was trading at Dh496.5 per gram on Thursday morning, up from Dh490.5 per gram at the end of Wednesday’s trading session.
At the start of the market, the prices of the other yellow metal varieties also increased, with 22K, 21K, and 18K selling at Dh459.75, Dh440.75, and Dh377.75 per gram, respective. The price of spot gold was up 2% at $4,131.28 an ounce.
According to Swissquote senior analyst Ipek Ozkardeskaya, the primary factor likely explaining Wednesday’s selloff in precious metals is that they are trading in highly overbought market conditions with increased volatility.
This October, the gold volatility index reached its highest point since March 2022. If past performance is any indication, gold fell 20% after that rise in volatility. Furthermore, a further price decline is feasible given the current enthusiasm, crowded speculative long holdings, and overbought conditions, she added, without endangering gold’s place in long-term portfolios.
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