How to trade Gold in Dubai
Why is trading gold so popular in Dubai?
The gold price in Dubai is closely monitored. This is not only by retail traders looking to speculate on the next price move, but by the owners and merchants of hundreds of stores at the traditional Souk market.
The Dubai Gold Souk is visited by hundreds of tourists a day. The Souk is popular for its huge variety of products combined with the fact that retail gold prices are some of the lowest in the world.
Figure 1 Dubai Gold Souk
What is 10 grams of 22k gold worth today?
As of 06/09/2022 10 grams of 22K gold is worth 437.72 GBP. That is approximately 380.62 USD or 1851.55 AED.
A possible technical outlook for Gold
If we want to speculate on the gold price in Dubai, one of the options open to us is to take a trade through a CFD, a Contract for Difference. If you would like some more information on CFD trading, please click here.
Trading Gold through a broker also gives you the opportunity to speculate on the price of gold against either the US Dollar, the Euro, the Australian Dollar, the Great British Pound, the Japanese Yen and the Swiss Franc.
One of the driving forces behind the recent gold decline has been the strong rally in the US Dollar. Is this trend about to change?
Let us look at a possible outlook using technical analysis.
Spot Gold 8-hour chart
There is a possible symmetrical pattern emerging known as a Gartley 222 formation. This could suggest that the next move in gold is towards the completion target area of 1836-1842. A move below the previous swing low of 1680 (21/06/2022) would invalidate the pattern.
Figure 2 Trading View Gold 8-hour chart.
On a final note, Gold remains a highly sought after commodity and trading product. It’s known as a hedge against global and geo-political uncertainty but has seen more interest over the past 20 years. This is due to the fact that its liquid, available through most trading providers, and a nice addition to any long-term portfolio.
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