Dubai gold prices increase slightly, but 24K still below Dh500
In the UAE, gold prices saw an overnight change of Dh4, 24-karat is back up to Dh498
Dubai: Gold inched up after sliding to a nine-week low on Wednesday. New Middle East tensions stoked inflation worries and traders now expect the Fed to raise rates at least once more in 2026.
Gold climbed by as much as 0.8% to around $4,140 an ounce, rebounding from the previous session's close, which was its weakest since early August. On Wednesday, projectiles hit a tanker off Qatar's coast, a rare strike in the heart of the Persian Gulf. Separately, the White House is said to be weighing military action against Iranian targets before the November midterms.
Other metals also firmed as buyers in China returned from a week-long holiday that had dampened trading across Asia, adding to the support for bullion.
In the UAE, gold prices saw an overnight change of roughly Dh4, with 24-karat gold inching back up to Dh498 versus the Dh494. 18-karat is trading at Dh379 on Thursday whereas 14-karat is trading at Dh295.75.
Even after Thursday's bounce, gold has lost roughly 20% since the US-Iran war began in late February. Soaring energy costs fed inflation and pushed central banks to begin tightening, which weighs on a metal that pays no yield.
The Bloomberg Dollar Spot Index has been trading near this year’s peak. A stronger dollar tends to make bullion more expensive for most buyers.
“The Fed minutes have kept gold under a stubborn ceiling, with policymakers still united in their inflation fight but divided over whether September’s hike was a precaution or the beginning of a tougher tightening campaign,” said Hebe Chen, senior market analyst at Vantage Global Prime to Bloomberg
Spot gold rose 0.34% to $4,128.27 an ounce at 09:30 a.m. in Dubai. Silver was down 0.40 per cent at $59.79, after falling 2.5% in the previous session. Platinum and palladium advanced. The Bloomberg dollar gauge was stable after gaining 0.3% the day before.
