Dubai Gold Prices Steady Amid Oil Rally, Fed Rate Hike Fears
Dubai's gold prices remained steady on Tuesday morning despite rising oil prices and expectations of a US Federal Reserve rate hike this week.
The global spot gold price was trading at $4,304 per ounce, down 0.18% from the previous day, while silver was priced at $63.26 per ounce, down 0.62%.
Vijay Valecha, financial analyst and CIO at Century Financial, attributed the increase in oil prices to the postponement of a planned meeting between Iran and several Gulf nations, which aims to create a temporary shipping lane through the Strait of Hormuz.
The shutdown of the Saudi East-West Pipeline over the weekend also contributed to higher oil prices, according to Valecha. He noted that the Middle East crisis has delivered an inflationary jolt to the global economy, with prices of crude, natural gas, and petroleum products rallying.