Dubai Gold Prices Rebound to Dh524 Amid Global Volatility
Dubai gold prices have recovered from their mid-week losses, rising to Dh524 per gram for 24K gold. This increase comes after a volatile week for the precious metal, influenced by safe-haven demand, shifting US interest-rate expectations, and geopolitical risks.
The 22K rate rose to Dh485.25 compared with Dh483.50 on Friday, while 18K gold increased to Dh398.75 from Dh397.25. These rates remain above their levels at the beginning of the week despite a sharp drop mid-week.
Internationally, spot gold rose more than 1% on Friday as investors bought after recent losses. Reuters reported spot gold at $4,363.01 per ounce, although it remained about 1.5% lower for the week. The rebound came despite stronger expectations of a Federal Reserve rate increase next week.
The US consumer prices rose 0.4% in August, while markets were pricing an 87% probability of a Fed rate hike, up from 67% before the inflation data. Higher interest rates can weigh on gold because the metal does not generate interest.