UAE Gold Prices Tumble as Warsh's Comments Fuel Rate Hike Expectations

Gold prices in the UAE dropped on Saturday, following a global slump in bullion. The price of 24-carat gold fell to Dh536.75 per gram, while 22-carat and 21-carat gold decreased to Dh497 and Dh476.75 per gram respectively. Meanwhile, 18-carat gold was trading at about Dh408.50 per gram.

The decline came after gold lost approximately 3% globally during Friday's trading, as investors increased their bets on tighter US monetary policy following comments by US Federal Reserve Chairman Kevin Warsh.

Warsh's remarks boosted market expectations of another interest rate hike to counter persistent inflationary pressures. This led to a rise in the chances of a September rate hike to around 58%, alongside an increase in the US dollar and Treasury yields.