Gold prices slipped for the third time this week by Wednesday’s close, as renewed optimism over easing US-China tensions lifted investor risk appetite. A stronger US Dollar, which surged to a two-week high, further reduced demand for the traditional safe-haven asset.
Nonetheless, growing expectations of more aggressive rate cuts by the Federal Reserve, driven by an unexpected contraction in US GDP and signs of cooling inflation, could put downward pressure on the Dollar. This has curbed deeper declines in gold, as traders hesitate to increase bearish positions on the non-yielding metal.
“The US economy contracted at an annualised rate of 0.3% during the first quarter of 2025 after growing at a solid pace of 2.4% in the previous quarter. The data, in turn, revives concerns about a looming US recession. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, rose 2.6% vs. 3% in February, pointing to easing inflationary pressures. Investors are looking forward to the manufacturing PMI data release today,” shared Vijay Valecha, Chief Investment Officer, Century Financial.
On the technical front, gold is trading below the 9 SMA on the daily chart. Immediate support is seen at the psychological level of $3,200, followed by the $3,160 level. Resistance is seen at the $3,260 level, which was the previous key support on the 4-hour chart.
UAE Gold Rates Today –
24 Carat – AED389.00
22 Carat – AED360.25
21 Carat – AED345.25
18 Carat – AED296.00
