Dubai gold rates ease as investors weigh Fed stance, US data and Middle East tensions
By Business & Property Desk1 min read
Gold prices in Dubai edged lower on Thursday morning as markets awaited clarity on US monetary policy signals and inflation figures, according to the Dubai Jewellery Group.
The 24K variant of the precious metal was trading at Dh486.75 per gram at the start of trading on Thursday, slipping from Dh488 per gram at Wednesday’s close. Other gold grades also declined: 22K stood at Dh450.75 per gram, 21K at Dh432.25 per gram, and 18K at Dh370.50 per gram.
Internationally, spot gold fell to $4,037.98 per ounce.
Federal Reserve decision and rate expectations
The US Federal Reserve held interest rates steady on Wednesday within the 3.75%-4.00% range, as widely anticipated. Policymakers opted to postpone any adjustment to borrowing costs until after next week’s US midterm elections, while awaiting additional inflation data.
According to the CME’s FedWatch Tool, traders now assign a 78% probability of a rate hike in December, down from 84% before the announcement.
Analyst views on market drivers
“Today’s fall is purely because of persistent Middle East uncertainty and markets positioning ahead of today’s inflation data,” Ajay Kedia, director at Mumbai-based Kedia Commodities, told Reuters.
Naeem Aslam, chief investment officer at London-based Zaye Capital Markets, said gold investors were assessing shifting geopolitical developments and energy supply expectations. He noted that recent remarks by US President Donald Trump regarding Venezuelan oil shipments, expanded US energy production, and large domestic investment commitments were introducing competing influences on gold prices.
“President Trump’s announcement of one million barrels of Venezuelan oil arriving in Texas at no cost to taxpayers, alongside his claims of improving shipping activity through the Strait of Hormuz, suggests the possibility of easing global energy supply pressures if these developments materialise,” Aslam said.
He added that greater oil availability could reduce transportation costs, moderate inflation expectations, and strengthen the case for lower interest rates. However, reduced geopolitical uncertainty could simultaneously weaken gold’s traditional safe-haven appeal, creating a more complicated environment for precious metals investors.
