Dubai Gold Prices Slip Amid Weaker Dollar and Interest Rate Uncertainty
Dubai's gold prices have edged lower on Thursday, with the 24K rate dipping to Dh531.25 per gram from Dh532 at Wednesday's close.
The move comes as global gold prices remain above $4,400 an ounce, with investors weighing a weaker US dollar against the possibility of higher US interest rates and awaiting fresh inflation data that could provide clues on the Federal Reserve's next move.
Analysts say a softer US dollar is currently providing support to gold, making it relatively cheaper for buyers holding other currencies when the US currency weakens.
Gold is also being supported by concerns around US fiscal pressures, with Daniel Hynes, senior commodities strategist at ANZ, saying that those pressures undermine confidence in the long-term value of US government debt and the dollar.