Dubai Gold Prices Hold Steady Amid US-Iran Tensions
Despite renewed hostilities between the US and Iran, gold prices in Dubai remain steady. The 24K variant in Dubai was trading at Dh485.25 per gram on Wednesday, losing only 25 fils from the previous day. The other variants, 22K, 21K, 18K, and 14K, were trading at Dh449.25, Dh430.75, Dh369.25, and Dh288 respectively.
Globally, spot gold was trading at $4,027.84 per ounce as of 9:10 am UAE time, down 0.24% from the previous day. Silver gained 0.58%, trading at $56.71 per ounce. Analysts say that gold is still a safe-haven asset despite the current tensions in the Middle East.
Vijay Valecha, CIO of Century Financial, said 'According to CME FedWatch, the probability of the current rates being maintained is at 64%. However, markets are still pricing a 90% probability of a rate hike by the end of the year. Expectations of a rate hike typically increase pressure on non-yielding metals, making them less attractive.'
The yellow metal has been down almost 25% from its highs in January and it may take some time for gold to recover. Market participants will closely watch the Fed meeting this Wednesday as renewed tensions in the Middle East have triggered a rise in energy costs.