Dubai gold prices recovered on Thursday morning, but 24K gold remained below Dh500 per gram. The price reached Dh498 at the market opening, gaining Dh4 from Wednesday’s close. Meanwhile, other gold categories also recorded gains during the morning session. However, global market pressures continued to limit the recovery in precious metals.
The 24K rate stood at Dh498 per gram after closing at Dh494 on Wednesday. At the same time, 22K gold traded at Dh461.25 per gram. The 21K rate reached Dh442.25, while 18K gold climbed to Dh379. Additionally, 14K gold traded at Dh295.75 per gram.
Dubai gold prices followed a modest improvement in international markets. Spot gold gained 0.44 percent to reach $4,132.50 per ounce. However, silver slipped 0.02 percent and traded near $60 per ounce. Therefore, precious metals continued to show mixed movement during the session.
Financial analyst Vijay Valecha said several factors continue to pressure both gold and silver. In particular, a stronger US dollar has created additional pressure across precious metals. Higher bond yields have also reduced some of gold’s appeal. Consequently, gold prices have remained volatile during recent trading sessions.
Valecha pointed to the US 10-year Treasury yield as another important market factor. The yield remained above 5.30 percent during the latest session. He said its relationship with gold has recently strengthened because of fiscal concerns. As a result, investors continue to monitor movements in bond yields closely.
Despite the pressure, investment flows into gold-backed exchange-traded funds have remained positive. Valecha said ETFs added around 81,000 troy ounces during the latest trading session. That increase lifted total net purchases for the year to about 2.19 million ounces. Moreover, the latest increase marked a third consecutive day of stronger holdings.
Central bank demand has also provided support for the precious metals market. Central banks added 39 tonnes of gold during August, according to Valecha. That figure increased from the previous month’s level. Therefore, continued official-sector buying could offer some support for gold prices.
From a technical perspective, gold faces an important support zone around $4,100 to $4,120. Valecha said gold recovered this area after an unsuccessful move below it. The zone also aligns with an upward trendline that began from June lows. A break below that area could bring the next support level near $4,050.
On the upside, gold faces initial resistance around $4,180 per ounce. The level sits close to the previous session’s high. Beyond that point, another resistance area appears between $4,220 and $4,250. This range also aligns with several technical indicators watched by market participants.
Meanwhile, silver continues to trade around a key technical area near $60. The $60 to $60.20 range currently provides important support for the metal. Initial resistance stands around $61.80 to $62, with another level near $63. Therefore, traders continue to watch these levels for signs of a stronger move.
For Dubai gold buyers, the latest recovery keeps prices close to the Dh500 mark. However, 24K gold still needs another Dh2 gain to return above that level. Global currency movements and bond yields could influence the next move. Meanwhile, central bank demand and ETF purchases may continue supporting the market.
