Dubai Gold Prices Rise Amid Fed Outlook
Gold prices in Dubai rose on Monday morning as investors assessed the Federal Reserve's outlook. The precious metal gained Dh1.75, with the 24K gold price trading at Dh529.25 per gram. Analysts say the recent pullback from record highs near $4,500 an ounce was driven by profit-taking rather than a change in gold's longer-term outlook.
Rania Gule, senior market analyst at XS.com, said that US inflation data came broadly in line with expectations, while signs of a softer labour market have reduced the need for further monetary tightening. This has strengthened expectations that the Federal Reserve may leave interest rates unchanged, supporting gold by lowering its opportunity cost.
The spot gold price was trading at $4,392.04 per ounce around 9:00am UAE time, up 0.31%. Silver was trading at $65.44 per ounce, up 0.92%.