Dubai: Gold prices jump nearly Dh12 in 24 hours to reach just shy of Dh500 per gram

[Editor's Note: Find out today's gold rate in Dubai]

Gold prices hit a nearly one-week high in Dubai on Tuesday, selling at just shy of Dh500 per gram. At 9am UAE time, 24K was trading at Dh499 per gram, rising nearly Dh12 per gram in the past 24 hours.

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Among the other variants of the precious metal, 22K, 21K and 18K were selling at Dh462, Dh443 and Dh379.75 per gram, respectively.

Spot gold was selling at $4,146.5 per ounce, up 1.25 per cent, on rate cut hopes by the US Federal Reserve.

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Aaron Hill, chief market analyst at FP Markets, said even before the Fed’s meeting minutes were released last week – a report that noted support for a cautious approach – expectations for a pause in policy easing had already dramatically increased.

“This commenced following Fed Chairman Jerome Powell characterising additional easing for December as ‘far from a foregone conclusion’ at the October meeting. It was only a month ago that markets all but fully priced in a 25-bp cut in December. The odds increased further following the release of the September US payrolls data, which revealed a robust upside surprise in the headline number (albeit concentrated in a few sectors), and unemployment rose to 4.4 per cent from 4.3 per cent,” said Hill.

Now, there is about a 60 per cent chance that the Fed will reduce the target rate, he added.

Vijay Valecha, chief investment officer, Century Financial said mixed Federal Reserve signals are keeping traders cautious.

“New York Fed President John Williams' dovish remarks boosted expectations of a December rate cut, with markets pricing in roughly a 70 per cent probability, which normally benefits non-interest-bearing assets like gold. A stronger dollar and better risk appetite in Asian equities kept gold under some pressure, while optimism surrounding a peace treaty on the Russia-Ukraine conflict and ongoing geopolitical developments in the Middle East provided support,” he said.

Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.