Gold prices were steady in the UAE at the opening of the markets on Wednesday.

The Dubai Jewellery Group data showed 24K trading at Dh257.5 per gram on Wednesday morning while 22K, 21K and 18K opened unchanged at Dh238.25, Dh230.75 and Dh197.75 per gram, respectively.

Globally, precious metal prices were trading higher on Wednesday ahead of Federal Reserve Chair Jerome Powell's testimony. Spot gold was up 0.56 per cent at $2,126.41 per ounce at 9.17 am UAE time.

Alex Kuptsikevich, senior market analyst at the FxPro, said gold is primed for a substantial move, second only to cryptocurrencies in amplitude but lacking their enduring strength.

“At the end of last week, we saw a swift technical completion of a bullish pattern. Sometimes, gold avoids volatility for weeks, but at certain moments, strong multi-day trends are born, and the movement becomes almost one-sided, as we saw this time,” he said.

“Current levels at $2,126 are around all-time highs… After Monday's strong rally above $2088, which rewrote the closing highs, the current working scenario for gold is for a rally to the $2,255 area, which is the 161.8 per cent level from the initial October-December impulse. The price has made a classic corrective pullback to 61.8 per cent of the initial rally at the start of the year,” he said.

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