Dubai Gold Prices Rise as Traders Await US Inflation Data Clues
Gold prices in Dubai saw an increase at the market open on Thursday as investors awaited key US inflation data that could influence expectations for the Federal Reserve’s next interest-rate decision.
The 24K variant of gold was trading at Dh531.25 per gram, while other variants like 22K, 21K, 18K, and 14K opened at Dh492, Dh471.75, Dh404.25, and Dh315.50 per gram respectively.
Despite the rise in Dubai, globally, the spot gold price fell 0.13% to $4,409.2 per ounce as of 9:05am UAE time, while silver was down 0.81% at $67.52 per ounce.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, noted that gold traders are currently weighing several competing market themes, keeping prices largely rangebound around $4,400 an ounce.
This is due to rising expectations of a US rate hike and higher bond yields, which have been a key headwind for gold. However, a weaker US dollar, resilient investment demand through exchange-traded funds and futures, and continued geopolitical uncertainty have helped limit the downside.