Dubai Gold Rates Dip on Stronger Dollar and Global Market Shifts
Dubai gold rates dipped on Monday, with 24K gold settling at Dh498 per gram as global bullion prices eased due to a stronger US dollar. The Dubai Jewellery Group reported 22K gold at Dh461 per gram and 18K gold at Dh379 per gram. The decline followed a 0.3% drop in spot gold to $4,131.61 an ounce, while US gold futures for December fell 0.1% to $4,159.30.
The price adjustment came as markets reacted to US monetary policy expectations, geopolitical tensions in the Middle East, and shifting oil supply conditions. A firmer US dollar index, up 0.6%, made gold more expensive for buyers using other currencies. However, softer US labor market data reduced expectations of an October interest rate hike, providing some support for bullion.
Markets now assign an 18% probability to an October rate hike, with December still at 88%, according to CME FedWatch. The Federal Reserve recently raised its benchmark rate to 3.75%, 4.00%. Geopolitical risks, including military actions in Yemen and tensions involving Iran, remain a key focus for precious metals.
In other precious metals, spot silver rose 0.9% to $60.94 an ounce, platinum gained 0.5% to $1,706.18, while palladium slipped 0.2% to $1,165.40.