Gold prices remained steady on Wednesday morning, with analysts calling the current phase a period of “slight correction” or “short-term consolidation. Globally, spot gold slipped to $3,964.9 per ounce at 10 a.m. UAE time, while silver traded at $47.68 per ounce. In Dubai, the price of 24K gold inched up to Dh478.50 per gram. Other variants also saw small adjustments, with 22K priced at Dh443, 21K at Dh424.75, and 18K at Dh364 per gram.
Vijay Valecha, Chief Investment Officer at Century Financial, said that precious metals have maintained strong momentum amid ongoing economic uncertainty and trade tensions. “However, as news about easing friction between the US and China surfaced, safe-haven demand slightly declined. This, combined with profit taking after strong rallies, led to the recent correction,” he noted.
Before the recent dip, early investors in gold were enjoying gains of about 67 percent for the year, making it a good time to book profits. Even after the pullback, gold remains up 51 percent year-to-date, continuing to outperform most other asset classes. Valecha described the current phase as a critical juncture for gold. “Recent range-bound movement indicates a possible bearish consolidation, suggesting that the pullback from October’s record high could extend further,” he said. “Technically, gold is trading below the 9-day simple moving average of $4,015, which has acted as a resistance point recently.
Also Read:
According to the CEO, Dubai Airport will Reach the 100 Million Passenger Milestone in Two Years
About Author
