Dubai Gold Prices Steady Ahead of Key Fed Meeting
Gold prices in Dubai remained relatively stable on Monday as investors awaited next week's US Federal Reserve policy meeting for clues on interest rates. The 24K gold price held steady at Dh492.75 per gram, matching last month's price. Silver, however, slipped to $59.4 an ounce, a 0.13% drop from the previous day.
Analysts note that gold has erased most of its earlier weekly gains due to escalating tensions and their impact on energy prices. Vijay Valecha, CIO of Century Financial, pointed out that rising energy costs have strengthened expectations of tighter US monetary policy. 'Higher energy prices combined with a resilient US labour market have bolstered the probability of a September rate hike,' he said.
Despite gold's pullback, it continues to attract buyers around the psychological $4,000 level, limiting deeper losses. Investors now await next week's FOMC meeting for further direction on rates. Brent crude surged above $100 per barrel for the first time since early June as the US-Iran conflict intensified.