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Gold prices steady in Dubai ahead of Fed rate decision
Gold, which got off to a strong start this year, has been losing out to Bitcoin and the US dollar since the start of the armed conflict in the Middle East
- PUBLISHED: Wed 18 Mar 2026, 9:51 AM
[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]
Gold and silver prices were steady on Wednesday morning as investors weighed Middle East risks ahead of the US Federal Reserve’s decision on interest rates.
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The precious metals have been losing appeal despite uncertainty and regional conflict, as central banks are expected to keep rates at high levels or even raise them. This has a positive impact on fiat currencies and strips gold of its key feature as a safe-haven asset amid currency debasement.
The 24K gold price was trading at Dh601.0 per gram when markets opened on Wednesday, up Dh1 per gram from Tuesday’s market close.
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Similarly, 22K, 21K, 18K and 14K were also trading slightly higher at Dh555.50, Dh532.75, Dh456.50 and Dh356.25 per gram, respectively.
Spot gold was trading below $5,000 per ounce at $4,994.75, down 0.16 per cent. Silver was down half a per cent at $79.31 per ounce.
Aaron Hill, chief market analyst at FP Markets, said spot gold and silver barely moved, as long as oil remains elevated, central banks will be unwilling to pull the trigger and lower rates. “Higher rates are typically a headwind for non-yielding assets like gold.”
Alex Kuptsikevich, chief market analyst at FxPro, said the market is fixated on the threat of accelerating inflation driven by high energy prices.
“As a result, central banks are expected to adopt tighter monetary policy, keeping rates at high levels or even raising them. This has a positive impact on fiat currencies and strips gold of its key feature as a store of value amid currency debasement. It is no surprise that the precious metal, which got off to a strong start, has been losing out to Bitcoin and the US dollar since the start of the armed conflict in the Middle East,” he said.
Although gold is generally regarded as a safe-haven asset, in the early stages of financial market turmoil, investors often choose to flee to liquidity. They favour fiat currencies and are far more willing to buy US dollar-denominated short-term Treasuries.
