Dubai Gold Prices Suffer Amid Elevated Energy Prices and Inflation Concerns
Dubai's gold prices ended the week lower due to elevated energy prices and inflation concerns. The price of 24-karat gold in the UAE remained unchanged at Dh514.25 compared to the previous day, but has fallen by Dh40 since August 27. In contrast, oil prices pulled back after climbing over 7% in two sessions amid reports of a potential deal between the US and Iran.
The price of gold has tracked energy prices and growing bets on further Fed rate increases, which tend to weigh on bullion as it generates no yield. Despite this, Saxo Bank's Head of Commodity Strategy Ole Hansen notes that Chinese demand for gold remains strong and is propping up the market.
Spot gold rose 0.02% to $4,263.34 an ounce in Dubai, while silver was up 0.01% at $63.55 an ounce but on track to end the week more than 3% lower.