Gold prices in Dubai traded slightly higher on Wednesday morning as investors weighed in the probability of a US Federal Reserve rate hike.
The 24K variant was trading at Dh476.25, up from Dh473.25 at the close of the markets on Tuesday, according to data by Dubai Jewellery Group.
The other variants of the yellow metal, 22K, 21K, 18K, and 14K, were higher at Dh441, Dh422.75, Dh362.5, and Dh282.75 per gram, respectively.
The global spot gold price was up 0.44 per cent at $3,947.34 per ounce as of 9:10am UAE time. Silver was up 0.01 per cent at $49.73 per ounce.
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Tony Sage, CEO of Critical Metals, said that markets are currently expecting a 75 per cent probability of a Fed interest rate hike in December, in addition to an increase next year.
“Less hawkish expectations could limit the pressure on the metal, although expectations of rate hikes by other major central banks remain a source of risk,” the analyst said.
He added that progress toward a deal between the US and Iran and a sustained decline in oil prices could limit inflation concerns and soften monetary policy tightening expectations.
“The metal continues to see strong demand from central banks, which added a net 321 tonnes in the third quarter, the fastest pace since late 2024,” he noted.
Investors are likely to monitor the outcome of the midterm elections and Fed comments in the near future. Moreover, stronger inflation signals or higher crude prices could lift yields and weigh on gold, Sage said.
Softer guidance from the Fed or de-escalation in the Middle East that can push oil down may help stabilise the metal and let central-bank demand drive a recovery.
Source: Khaleej Times