Dubai gold dips below Dh500 a gram after weak US jobs
Dubai: Prices of the yellow metal are in a consolidation phase with spot gold trading at $4150 levels after its biggest weekly drop of 3.4 percent since June. Investors are assessing how softer US hiring and rising bond yields could shape the Fed's next moves on interest rates. In the UAE, those looking to buy gold might see some respite from mid-September levels. 24-karat gold is trading below…
Dubai gold prices have dropped below Dh500 per gram, sliding after a sharp 3.4 percent weekly decline since June. The UAE market is currently experiencing a period of consolidation for the yellow metal, with spot gold trading at $4150. Investors are closely watching the recent US labor market data and rising bond yields, which could influence the Federal Reserve's future interest rate decisions.
In Dubai, buyers can currently obtain 24-karat gold for Dh498 per gram, with 22-karat and 18-karat gold priced at Dh461 and Dh379, respectively. It is the 14-carat jewelry that may attract more customers, as its cost has plummeted to Dh295.50. The recent unemployment data, showing only 29,000 new jobs added in September, has failed to meet the lowest expectations from economists.
Consequently, the Federal Reserve now anticipates a mere 20% probability of a rate hike in October, down from a previous 70% probability. Despite the absence of yield, gold typically suffers due to rising interest rates. Inflation remains a concern, with oil prices surging due to ongoing tensions in the Middle East. On a brighter note, silver experienced a 1.3 percent increase, reaching $61.45 per ounce, following a steep 6 percent drop last week.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
