Dubai gold prices steady after one-month decline amid Fed rate hike uncertainty
Gold prices in Dubai remained stable at the start of this week after a one-month decline of Dh35.75. On Monday, 24K gold opened at Dh498 per gram, down slightly from Dh499 over the weekend, according to data from the Dubai Jewellery Group. The other variants, 22K, 21K, 18K, and 14K, were priced at Dh461, Dh442, Dh379, and Dh295.5 per gram, respectively.
Globally, spot gold fell 0.18% to $1,932.2 per ounce, while silver rose 0.84% to $20.92 per ounce. The decline in gold was attributed to a strong US dollar, though losses were mitigated by recent soft economic data that reduced expectations of a Federal Reserve rate hike in October.
Financial analyst and CIO of Century Financial, Vijay Valecha, noted last week that the probability of an October rate hike had dropped to nearly 50%, down from previous estimates of 70%. This shift came after comments from John Williams, President and CEO of the Federal Reserve Bank of New York, suggesting only one further rate adjustment might be needed this year.
Valecha also highlighted rising US Treasury yields as a risk to gold’s recovery, with the 30-year yield climbing above 5.61%, its highest level since 2002. He emphasized that upcoming US economic data, including the core PCE price index and non-farm payrolls report, would be crucial for gold’s near-term direction. Valecha added that gold could retest support around $1,920 before making further gains.