Gold prices experienced a minor dip in the United Arab Emirates (UAE) on Wednesday morning, as investors and traders held their breath ahead of the US Federal Reserve’s policy decision.
As of 9 a.m. local time on Wednesday, data from the Dubai Jewellery Group showcased a decline in the rates of various karat gold. The 24K gold traded at Dh233.75 per gram, slightly down from the previous close at Dh234.5 per gram. Similarly, the rates for 22K, 21K, and 18K gold were recorded at Dh216.5, Dh209.5, and Dh179.5 per gram, respectively.
On the global stage, the spot gold price also receded marginally by 0.05% to $1,930.46 per ounce as of 9.25 a.m. UAE time, reversing some of its previous gains from the week-high figures seen on Tuesday.
Investors are closely watching the upcoming Federal Reserve meeting for potential indications on the future direction of the US economic and monetary policies. The general expectation is for the interest rates to hold steady, but the market is keen to understand the Federal Reserve’s perspective on inflation and future policy directions.
Vijay Valecha, Chief Investment Officer at Century Financial, commented on the gold prices ahead of the pivotal meeting, explaining that the gold was trading above the crucial $1,930 threshold. Analyzing the technical aspects, Valecha noted, “The current gold price is trading above the 61.8% Fibonacci retracement level of the downtrend, which spanned from $1,953.47 to $1,900.82, situating it at $1,934.5.”
The market predicts initial resistance might surface around the Senkou B IchiMoku cloud at $1,940, followed by a higher barrier at $1,947.5. Meanwhile, support levels could establish at $1,924, which corresponds with the 200-day Simple Moving Average (SMA), with further support envisioned at $1,918.
