Dubai: Gold prices stable; 24K trades above Dh500 at markets' opening

[Editor's Note: Want to know the today gold rate in UAE? Click here.] 

Gold prices in Dubai were steady as 24K was trading above Dh500 per gram at the opening of the markets.

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On Thursday morning, 24K gold prices in Dubai stood at Dh500.25 per gram while prices of 22K, 21K and 18K were trading at Dh463.25, Dh444.25 and Dh380.75 per gram, respectively.

Residents and visitors buy 24K gold coins and bars for investments and savings, while 22K, 21K and 18K apply for jewellery. Spot gold was trading at $4,152.62 per ounce, down 0.36 per cent, as investors look to the US Federal Reserve’s decision about interest rate cuts.

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Daniela Sabin Hathorn, senior market analyst at Capital.com, said gold is back trading with an upside bias after a few days of sideways consolidation following a downside correction earlier this month.

“Markets drifted without a clear direction last week as uncertainty about the Fed’s policy outlook caused risk appetite to dwindle. This week, the push higher in gold is largely being driven by renewed expectations that the Fed could cut interest rates again in December, a shift fuelled by disappointing US economic data and dovish comments from Fed officials,” she said.

The latest pricing on the CME FedWatch tool shows that the odds of another cut are now at 85 per cent, having risen sharply from under 20 per cent just a week ago.

“Several factors have triggered this move, but the latest driver seems to be the increase in odds that Kevin Hassett, chairman of the president’s National Economic Council, will get elected by US President Donald Trump as the new Fed Chairman next year. His dovish growth focus is thought to be the one that most aligns with Trump’s views that that rates can fall much further, making him the perfect candidate. If he was elected, a faster easing cycle would be priced in,” said Hathorn.

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.