Dubai Gold Prices Climb as Investors Weigh Fed Interest Rate Outlook
Gold prices in Dubai rose on Monday morning as investors weighed the outlook for interest rates from the US Federal Reserve. The spot gold price was trading at $4,392.04 per ounce around 9 am UAE time, up 0.31 percent.
Silver followed suit, increasing by 0.92 percent to $65.44 per ounce. Analysts attributed the uptick in prices to expectations that the Federal Reserve may keep interest rates on hold in the coming months.
Rania Gule, senior market analyst at XS.com, noted that recent US inflation data came in line with expectations and signs of a softer labour market reduced the need for further monetary tightening.
This has strengthened expectations that the Fed may leave interest rates unchanged, supporting gold prices by lowering the opportunity cost of holding the non-yielding asset.