Dubai gold prices drop as rate hike bets increase
Dubai: If you are looking to buy gold today in the UAE, you may be willing to loosen those purse strings as prices have dropped by at least Dh10 since the start of the week. Globally gold is reacting to resurgent energy prices and stronger-than-expected US economic data that came in on Wednesday. The glum scenario has tilted the scale in favour of the Federal reserve likely to raise interest…
Dubai: Gold prices have experienced a noticeable drop in the UAE, with prices falling by a minimum of Dh10 since the beginning of the week. The decline in gold prices is attributed to a combination of factors, including increased energy costs, stronger-than-anticipated economic data from the United States, and the Federal Reserve's likelihood of raising interest rates to curb inflation.
On Thursday, 24-karat gold became slightly cheaper compared to the previous trading day, trading at Dh517 per ounce, while 22-karat gold is priced at Dh478.75, and 18-karat gold is priced at Dh393.50. The latest price data for Dubai's gold market can be accessed via the Gulf News app, available for free download. In diplomatic developments, Iran's President Masoud Pezeshkian delivered a hardline address at the UN, refusing to allow the Strait of Hormuz to remain open for as long as sanctions and the US blockade persist.
Iran has expressed its willingness to engage in talks but will not be influenced by threats, emphasizing that it has no intention of developing nuclear weapons, even though it will not relinquish its right to pursue nuclear technology for economic reasons. This stance highlights the challenges in reaching a peace agreement with Washington, as both sides attempt to resume negotiations this week.
Gold prices globally have been influenced by expectations for Federal Reserve policy, with investors considering whether high energy prices will maintain inflation levels sufficient to prompt additional rate hikes, potentially impacting the precious metal's value. Since the start of the US-Iran conflict in late February, gold has depreciated by around 20%.
Despite rising borrowing costs and a strengthening dollar, gold remains an attractive option for investors due to strong inflows into gold ETFs and demand from central banks. As of the latest update, spot gold is trading at $4,290.24, showing only a slight increase of 0.18 percent. Silver prices have decreased by half a percent to $64.16, while platinum and palladium prices have also edged lower.
The Bloomberg Dollar Spot Index, a measure of the US currency, remained stable following a four-day surge to a near two-month high.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
