Dubai gold tops Dh405 while global spot nears $3,360
Dollar weakness and Fed outlook boost market momentum
DUBAI’s gold market opened Thursday with 24-karat priced at Dh405.00 per gram, up Dh1.00 from Wednesday’s Dh404.00.
The 22K rate stood at Dh375.00, 21K at Dh359.50 and 18K at Dh308.25.
On Wednesday, 22K was Dh374.00, 21K Dh358.75, and 18K Dh307.50. Tuesday’s session saw 24K at Dh404.25, 22K Dh374.50, 21K Dh359.00, and 18K Dh307.75. Monday’s rates were higher, with 24K at Dh406.75, 22K at Dh377.00, 21K at Dh361.25, and 18K at Dh309.50.
Global gold rates
Gold extended gains for a third consecutive session on Thursday, supported by expectations of a U.S. Federal Reserve interest rate cut in September after subdued inflation figures. This pressure on the dollar also underpinned gold’s appeal. Spot gold rose 0.2% to $3,359.81 per ounce at 0410 GMT, while US gold futures for December delivery gained 0.3% to $3,408.50.
The dollar hovered near multi-week lows, making bullion more attractive for non-dollar buyers, while benchmark US 10-year Treasury yields lingered close to a one-week low.
How are markets responding?
Markets are pricing in a strong chance of a 50 basis-point Fed cut on September 17, with data from LSEG showing almost certain expectations of a reduction. Non-yielding gold tends to thrive when interest rates fall, as investors seek alternative assets.
Elsewhere in precious metals, spot silver edged up 0.1% to $38.56, platinum slipped 0.2% to $1,337.12, and palladium surged 1.5% to $1,139.32.
Investors now await the US Producer Price Index, weekly jobless claims and retail sales figures for further signals on the Fed’s policy path. The global market also remains attentive to geopolitical developments, with Ukraine’s president cautioning US leaders over Russia’s negotiation stance.