Dubai Gold Prices Soar as US Economic Data Weighs on Fed Tightening

Gold prices in Dubai have continued to rise this week, increasing by Dh17.5 per gram from last Thursday's price. The current price of gold is Dh541 per gram, with other variants also experiencing gains.

The UAE dirham is pegged to the US dollar, which means that changes in US Treasury yields directly impact the UAE's monetary policy. Analysts note that softer US economic data has reduced expectations of further tightening by the Federal Reserve.

Vijay Valecha, CIO of Century Financial, suggests that lower yields and a weaker dollar would remain supportive for precious metals. He notes that elevated oil prices and fiscal concerns could keep volatility high, but both gold and silver retain a bullish medium-term bias.