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TradingGold

How to trade Gold in Dubai

Pepperstone
Trading Guides
16 Sep 2022

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.

Technical

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.

The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.