Gold prices in Dubai slightly decreased on Tuesday morning. This occurred against the backdrop of improving expectations regarding lower US bond yields, a weakening dollar, and the maintenance of a stable technical structure that favors further growth in gold prices.
At the opening of markets on Tuesday, the price of 24-karat gold was 529.50 dirhams per gram, which is below the previous level of 530.75 dirhams. Other varieties of the yellow metal—22K, 21K, 18K, and 14K—traded slightly higher, reaching 490.25, 470, 402.75, and 314.25 dirhams, respectively.
In the global market, spot gold prices remained almost unchanged compared to the previous day, trading at $4392.19 per ounce, representing a 0.31 percent increase. Silver traded at $65.14 per ounce, showing a rise of 0.92 percent.
Analysts believe that the recent decline is a healthy profit-taking period rather than a sign of a reversal in the broader bullish trend. Furthermore, this week gold began recovering after falling by 1.3 percent on Thursday. This rise was mainly driven by weaker-than-expected retail sales in the US, which strengthened expectations for a softer Federal Reserve policy.
Similarly, weaker economic data contributed to a decrease in Treasury bond yields and put pressure on the dollar, which enhanced the macroeconomic support for non-yielding assets like gold, an analyst explained.
Vijay Valecha, Investment Director at Century Financial, noted: 'As the US economic momentum shows signs of slowing down, initial yields may decrease, while expectations of easing from the Fed remain supportive.' He added that 'a weaker dollar also provides an additional tailwind for bullion, keeping the path of least resistance at a higher level. Therefore, the recent divergence between gold and other macro drivers should be monitored, but for now it does not undermine the overall bullish structure.'
According to the daily chart, gold is testing the $4400 level. Valecha stated that a sustained breakthrough above this level could trigger the next rise towards $4450, and then $4500. He also emphasized that 'below, the key short-term support remains at $4350; provided prices stay above this zone, the overall bullish structure remains intact. Overall, improving expectations for lower US yields, a weaker dollar, and a stable technical structure continue to support further growth in gold.'
Silver, on the other hand, continued its recovery after breaking through the downtrend line. The metal is testing resistance, and a sustained breakthrough above $66.40 could potentially open the way to $68.00. Support remains at $64.30, with the overall bullish structure remaining undamaged as long as prices hold above this level.