Dubai Gold Prices Dip Below Dh500 Amid Weak US Jobs Data
Gold prices in Dubai have dipped below Dh500 per gram for the first time since mid-September, reflecting a broader consolidation phase in the market. Spot gold is currently trading at around $4,151.92, up slightly by 0.3%, after experiencing its largest weekly drop of 3.4% since June. Investors are closely monitoring the impact of softer US hiring data and rising bond yields on the Federal Reserve's interest rate decisions.
In the UAE, 24-karat gold is priced at Dh498 per gram, while 22-karat gold stands at Dh461 per gram. 18-karat gold is available for Dh379, and 14-carat gold has dropped to Dh295.50 per gram. The decline in prices may attract buyers, particularly for lightweight 14-carat jewelry.
The weak US jobs report, which showed only 29,000 jobs added in September, has reduced pressure on the Federal Reserve to raise interest rates aggressively. Markets now estimate a 20% chance of an October rate hike, down from 70% a week earlier. Gold, which offers no yield, typically underperforms in rising interest rate environments.
Despite easing rate hike expectations, inflationary pressures persist, with oil prices rising amid ongoing Middle East conflicts. Treasury Secretary Scott Bessent downplayed concerns over high borrowing costs, noting they align with global trends. The Federal Reserve's September meeting record, due midweek, may provide further insights into future monetary policy.
Other precious metals have also seen gains, with silver rising 1.3% to $61.45 an ounce after a sharp 6% drop last week. Platinum and palladium have also moved higher, while the dollar index remains stable after three weeks of increases.