Dubai gold rates rise Dh3.25 as 24K hits Dh531.25
Silver edges higher as precious metals track global market moves
DUBAI – Dubai gold prices moved higher on Thursday, with all three key jewellery rates rising from Wednesday's levels, according to Dubai Jewellery Group data.
The increase comes as international gold prices edged higher amid a softer US dollar and investor focus on fresh American inflation data.
Developments involving Iran, the Strait of Hormuz and oil markets are also keeping precious metals traders alert.
Dubai gold rates
The Dubai Jewellery Group's suggested retail jewellery rates for Thursday put 24K gold at Dh531.25 per gram, up Dh3.25 from Dh528 on Wednesday. The 22K rate climbed to Dh492, gaining Dh3 from Dh489, while 18K increased by Dh2.50 to Dh404.25, compared with Dh401.75 a day earlier.
The latest move leaves 24K gold Dh1.25 above Monday's Dh530 rate, while 22K is Dh1.25 higher than Monday's Dh490.75. The 18K rate has risen Dh1 from Monday's Dh403.25.
However, Thursday's rates remain below Tuesday's levels, when 24K stood at Dh534.75, 22K at Dh495 and 18K at Dh407. The latest figures therefore mark a rebound from Wednesday but remain below the week's earlier peak.
Global bullion
Internationally, spot gold rose 0.3% to $4,414.28 an ounce as of 0419 GMT on Thursday, while US gold futures for December delivery slipped 0.1% to $4,457.20. The softer dollar helped support bullion by making dollar-priced metals relatively cheaper for holders of other currencies.
Markets are now focused on US producer price data due later on Thursday and consumer inflation figures scheduled for Friday. The reports could influence expectations for the Federal Reserve's interest-rate path. A Reuters poll found most economists expect the Fed to hold rates steady at its September 15-16 meeting and for the remainder of the year, although CME FedWatch showed markets pricing in a 60% chance of a rate increase this month.
The dollar's subdued performance has provided additional support to gold, while concerns surrounding US fiscal pressures are also keeping attention on the longer-term value of the currency and government debt. US debt surpassed $40 trillion last month, adding another factor to the bullion market.
Iran and oil
Geopolitical developments remain closely watched, although current market moves are being driven more directly by currency and inflation expectations. Iran said on Wednesday that it had attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers, marking a major escalation in attacks on shipping during the six-month-old conflict.
Oil prices have also remained elevated amid the wider regional conflict, adding to concerns about inflation and the potential implications for US monetary policy. Rising energy costs can complicate the outlook for interest rates, creating competing forces for gold as investors balance inflation protection against the pressure of higher borrowing costs.
Other precious metals
Silver was also firmer, with spot silver up 0.3% at $67.50 an ounce. Platinum fell 0.4% to $1,888.05, while palladium gained 0.2% to $1,356.20.