Dubai: Gold prices hold steady, 24K sees slight rise to Dh479

A day after the US Federal Reserve announced its second straight quarter-point interest rate cut to hedge against growing labor market risks, gold prices continued to hold steady. This comes after a week of the market being highly volatile after hitting record highs on October 20.

Globally, spot prices stood at $3952.79 per ounce at 9:30am UAE time, while silver stood at $47.52.

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In Dubai, the price of 24K rose slightly to stand at Dh479 on Thursday morning, as opposed to Dh476 on Wednesday morning. Similarly, 22K, 21K and 18K stood to Dh443.50, Dh425.25, and Dh364.25 per gram, respectively.

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It was on Wednesday that policymakers voted 10-2 in favor of lowering the bank's key lending rate to between 3.75 per cent and 4.00 per cent, the Fed said in a statement. 

Marginal correction

According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, the correction in the yellow metal is marginal, especially considering the rally that gold has experienced.

"Gold has rallied very far, experiencing more than 50 per cent increase in a year,” he said. “It's not something that we experience. So gold was running out of steam. So far, the correction is relatively — even though it's about $500 — considering how far we've rallied, it's still relatively small. So, I think we're in the consolidation phase.”

He also said it is too early to say whether the correction is done or will continue but said he forecasts gold prices going up again. “My view is that we will eventually move higher,” he said. “$5,000 is not out of reach. But I think that's going to be a story for 2026. We may have seen the peak this year as we head into a period where the market consolidates.” 

Nasreen Abdulla

nasreen@khaleejtimes.com

Nasreen Abdulla is a Special Correspondent covering food, tech and human interest stories. When not challenged by deadlines, you’ll find her pulling off submissions on the jiu jitsu mats.