Gold prices in the UAE declined by 2% on November 11, extending last week’s downward trend. This dip follows recent U.S. presidential election results, which have introduced uncertainty into the global economic outlook, and ongoing inflationary pressures impacting investor sentiment.
In the UAE, gold is priced as follows: 24K at AED323.50, 22K at AED299.50, 21K at AED 290.00, and 18K at AED248.50. Gold is trading at $2,670 per ounce, down 0.53%, with a support level around the 50-day Simple Moving Average (SMA) at $2,646, while resistance is seen at the 9-day and 21-day SMAs at $2,716, noted Vijay Valecha, Chief Investment Officer at Century Financial.
Valecha explained that the market expects fewer Fed rate cuts under the Trump administration, prompting hedge funds to reduce their bullish positions on gold, now at a 12-week low. However, he noted that fundamental factors behind gold’s 30% annual gain remain intact, with central banks, especially in emerging markets, actively buying gold. While China paused its gold purchases in October, Valecha added that potential U.S. deficit spending and geopolitical tensions could renew demand for gold as a safe-haven asset.
