Gold steadies at Dh479.25 in UAE, traders gauge Fed outlook

Dubai: Gold prices in the UAE held steady on Thursday, with 24-karat gold priced at Dh479.25 a gram and 22-karat at Dh443.75, unchanged from Wednesday. The pause came after a week of mixed movements reflecting both profit-taking and renewed buying interest.

At the start of November, prices were hovering around Dh482.25 for 24-karat and Dh446.50 for 22-karat. They climbed to Dh483.75 and Dh448.00 on November 3 before easing to Dh475.25 and Dh440.00 on November 4 as global bullion retreated from record levels. Since then, prices have stabilised, suggesting the local market is mirroring a period of consolidation in international gold trade. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Global cues drive sentiment

Internationally, bullion held just above $3,970 an ounce after rising 1.2% on Wednesday. Traders are assessing how the latest US labour market data could shape the Federal Reserve’s next policy moves.

Figures from ADP Research showed private-sector payrolls increasing by 42,000 in October after two months of contraction. While the uptick eased fears of a sharper slowdown, it remained consistent with a gradual cooling in labour demand.

Federal Reserve Governor Stephen Miran called the increase “a welcome surprise,” but reiterated his view that interest rates need to be lowered more aggressively. Miran has dissented from the Fed’s recent quarter-point cuts in September and October, pressing instead for half-point reductions to accelerate policy easing.

Consolidation seen as healthy

Gold’s advance of more than 50% this year has been fuelled by US rate cuts, persistent central-bank buying and inflows into bullion-backed exchange-traded funds. The World Gold Council said the market “looks to have entered a consolidation phase to unwind the historical overbought condition, which we view as a healthy development in the core uptrend.”

Analysts note that support remains strong in the $3,777–$3,729 range, while a sustained move above $4,158 could signal renewed momentum toward record highs.

Market takes a breather

Recent trading flows indicate a market catching its breath. Exchange-traded gold funds have continued to see outflows across major regions, and options traders have pared back bullish positions after profit-taking earlier in the week. Volatility, while still elevated, appears to be easing.

In the absence of new US economic data, delayed by the ongoing government shutdown, investors are looking to policy signals from the Fed and upcoming inflation figures for clearer direction. For now, both international and UAE gold markets appear to be marking time after a period of intense price swings, with local jewellers expecting steady interest from buyers watching for the next move in global rates.

- With inputs from agencies.