Will gold price dip to $2,200 or hit $4,600 in Dubai in UAE?

The price of 24K in Dubai has been seesawing around Dh400 per gram and 22K is fluctuating around Dh375 per gram over the last few months. Gold prices in Dubai have been rallying over the past couple of years, but the rally may not continue, going forward, due to “accumulated overbought conditions”. Therefore, according to an analyst, there are higher chances of prices going down, rather than going north. The price of 24K in Dubai has been seesawing aro“

This tedious five-month movement to the right is likely to end in the coming weeks, as August often marks the start of major trends in gold. The duration of consolidation is often directly proportional to the strength of the breakout. From a technical analysis perspective, given the accumulated overbought condition, the downside potential is huge — up to $3,000 or even $2,200 per ounce. However, the upside potential is no less impressive: $4,600 in an extreme bullish scenario, including the US Federal Reserve switching to a mode of absolute softness,” said Kuptsikevich.

On Monday, the Dubai Jewellery Group data showed 24K trading at Dh405.5 per gram at the opening of the markets, down from Dh406.25 per gram at the close of the markets over the weekend. Among the other variants of the precious metal, 22K, 21K, and 18K opened lower at Dh375.5, Dh360.25, and Dh308.75 per gram, respectively.Globally, spot gold was trading at $3,364.76 per ounce, down 0.23  per cent.