UAE: Gold Prices Bounce Back, Surging by Dh1 per Gram in Dubai

22 Aug, 2023

UAE: Gold Prices Bounce Back, Surging by Dh1 per Gram in Dubai

Gold prices experienced a noticeable increase in the UAE, rising by Dh1 per gram during the market's opening on Tuesday. Data provided by the Dubai Jewellery Group indicated that the 24K variant of this valuable metal was trading at Dh229.5 per gram. This marked an ascent from the previous value of Dh228.5 recorded at the market's closure on Monday. Correspondingly, other variants like 22K, 21K, and 18K also exhibited upward movement, opening at Dh212.5, Dh205.75, and Dh176.25 per gram, respectively, at 9 a.m. in UAE time.

The preceding day, gold reported a gain of approximately 0.3%, marking its most favorable performance in over two weeks, following a period of five consecutive sessions of losses. As of 9:30 a.m. in UAE time, spot gold maintained its position at $1,889.52 per ounce.

However, gold's trajectory over the past weeks paints a different picture. The precious metal concluded the fourth consecutive week with a series of losses. This downward trend translated into a decrease of over three percent in its value throughout the current month.

Notably, this performance has led to concerns regarding gold's recent trends. Daniel Dubrovsky, a contributing senior strategist at dailyFX, noted that this recent performance is the weakest since February. In response, retail traders have exhibited an increasingly bullish sentiment towards gold.

To provide insight into retail sentiment, the IG Client Sentiment (IGCS) gauge revealed that around 81 percent of retail traders maintain a net-long position on gold. This prevailing bullish sentiment suggests the potential for prices to continue their downward trajectory. Specifically, the data highlighted an increase in upside exposure by 4.02 percent and 6.91 percent in comparison to the previous day and week, respectively. Consequently, these trends contribute to a stronger bearish contrarian trading bias concerning gold.