Dubai: Gold held steady after its sharpest weekly decline since June, as traders weighed persistently high energy prices ahead of the Federal Reserve’s next policy meeting. The metal hovered near $4,000 an ounce, having lost over 4% last week to hit its lowest level since July.
In the UAE, gold prices have inched slightly higher, but still giving shoppers a chance to get more grammage for each dirham. 24-karat gold is now priced at Dh484 versus the Dh481.50, The popular 22-karat is trading below the Dh450 mark at Dh448.25. Meanwhile, 18-karat is priced at Dh368.25 and light-weight 14-karat at Dh287.25 on Monday.
External factors at play
Crude eased from a six-month high as Trump told Fox News a decision is near on whether to negotiate with Iran or resume strikes. Meanwhile, American consumer confidence sank to a five-month low this October. Views on the Fed’s rate path have changed over the past month, which clouds the near-term outlook for gold.
Traders first piled into bets on an October hike after inflation data came in hotter than expected. Remarks from central bank officials then pulled those forecasts back. Markets now price roughly a 10% chance of a hike at the Fed’s meeting later this week. Pressure on prices from high energy costs has still fueled wagers on an increase before the year ends. Higher borrowing costs weigh on gold, since it pays no interest.
Last week’s slide below $4,000 an ounce reflected a shift out of AI-linked stocks and into bonds. Gold was sold as investors raised cash to offset equity losses.
Spot gold inched upwards by 0.32 per cent to $4012.4 an ounce as of 09:45 am in Dubai. Silver rose 0.2 per cent to $54.22 an ounce after shedding 5.4 per cent last week. Platinum and palladium inched up. The Bloomberg Dollar Spot Index, which tracks the US currency, slipped 0.1 per cent