Dubai Gold Prices Eased as Global Markets Weigh Fed Interest Rate Outlook
Dubai's gold prices declined on Monday morning after a volatile week for buyers in the emirate. The 24-karat variety, which had touched Dh542 on September 3, fell to Dh530.25 per gram by 8:50 am. This represents a decline of Dh3.50 from Sunday's level.
The easing of prices comes after a strong start to the month for gold in Dubai. The 24-karat rate began at Dh522 and rose to Dh542 on September 3, but has since fallen by Dh11.75 to its current level. It remains Dh8.25 above its September 1 price.
Global gold prices also slipped below $4,400 an ounce earlier in the day, before recovering part of its loss. The decline comes as traders reassess the outlook for US interest rates following stronger-than-expected nonfarm payrolls data. Higher interest rates can weigh on gold due to its lack of yield and a stronger dollar making bullion more expensive.
Oil prices rose in response to developments in the Middle East, with Brent crude trading near $97 a barrel. The focus remains on inflation and interest rates ahead of the US Federal Reserve's meeting on September 15-16.