Dubai Gold Prices Dip Below Dh500 Amid Weak US Jobs Data
Gold prices in Dubai have fallen below Dh500 per gram, marking a significant drop from mid-September levels. The dip follows a 3.4 percent weekly decline, the largest since June, as global markets react to weaker-than-expected US jobs data. In the UAE, 24-karat gold is now priced at Dh498 per gram, while 22-karat and 18-karat gold are available at Dh461 and Dh379, respectively. Lightweight 14-carat jewelry has seen a price drop to Dh295.50, potentially attracting more buyers.
The weak US jobs report, which showed only 29,000 new jobs added in September, has reduced pressure on the Federal Reserve to raise interest rates aggressively. Markets now assign just a 20 percent chance of an October rate hike, down from 70 percent a week earlier. Gold, which offers no yield, typically suffers when interest rates rise, as investors seek higher returns elsewhere.
Despite easing rate hike expectations, inflationary pressures persist, driven by rising oil prices amid ongoing Middle East conflicts. Yemen's Saudi-backed leaders have launched an offensive against Iran-backed Houthis, further exacerbating geopolitical tensions. Treasury Secretary Scott Bessent downplayed concerns over high borrowing costs, noting they align with global trends. However, gold prices fell over 6 percent last month due to inflation and rate hike fears.
Currently, spot gold is trading slightly higher at $4,151.92, up 0.3 percent. Silver rebounded 1.3 percent to $61.45 an ounce, recovering from a 6 percent drop last week. Platinum and palladium also saw gains, while the US dollar remained stable after three weeks of increases.