Dubai gold rates edge higher with 24K at Dh520.75 amid global tensions
Silver gains 1.5% as platinum and palladium also move higher
DUBAI – Dubai gold rates moved higher on Wednesday, with 24K gold rising to Dh520.75 per gram as international bullion prices recovered from a more than one-month low.
The latest retail figures from the Dubai Jewellery Group showed gains across the main purity categories, although prices remained below Monday's levels.
Global markets were meanwhile focused on the US Federal Reserve's policy decision, the dollar, oil prices and continuing tensions involving Iran and the Strait of Hormuz.
Dubai gold rates
The Dubai Jewellery Group's suggested retail gold jewellery prices for Wednesday stood at Dh520.75 per gram for 24K, Dh482.25 for 22K and Dh396.25 for 18K.
Compared with Tuesday, 24K gold increased by Dh2, while 22K rose by Dh1.75 and 18K gained Dh1.50. However, the three categories remained lower than Monday's rates of Dh521.75, Dh483.25 and Dh397 respectively. That leaves 24K gold Dh1 below Monday's level, while 22K is Dh1 lower and 18K is Dh0.75 lower.
Global gold market
The moves came as international gold prices regained ground after touching their lowest level in more than a month on Monday. Spot gold was up 0.8% at $4,328.39 an ounce at 0310 GMT on Wednesday, while US gold futures for December delivery slipped 0.9% to $4,369.50.
The US Federal Reserve's interest-rate decision remained central to market sentiment. Traders were pricing in a 92.4% probability of at least a 25-basis-point rate hike, according to CME FedWatch data cited by Reuters.
Higher interest rates can weigh on gold because they increase the opportunity cost of holding non-yielding bullion. At the same time, concerns over fiscal conditions, elevated long-term government bond yields and political risks in the US have been cited as factors supporting gold's resilience.
The dollar was also holding near multi-week highs against major currencies, supported by expectations of tighter US monetary policy. Reuters reported that markets had priced a 25-basis-point hike with around a 90% probability, with the dollar expected to gain modestly if the increase materialises.
Iran and oil
Geopolitical developments continued to shape precious-metals trading. US President Donald Trump said on Monday that Iran wanted to reach a deal with Washington, while fighting and attacks across the region continued to threaten energy supplies.
Traffic through the Strait of Hormuz remained severely disrupted, with only four vessel crossings recorded on Tuesday compared with a 10-day average of 18, according to preliminary data reported by Reuters. The waterway previously carried roughly one-fifth of global oil and liquefied natural gas shipments.
Oil prices, meanwhile, eased on Wednesday after an unexpected increase in US crude inventories, although supply concerns remained after Saudi Arabia suspended oil loading at its Yanbu port.
In other precious metals, spot silver climbed 1.5% to $64.60 an ounce. Platinum rose 0.7% to $1,788.25, while palladium advanced 1.6% to $1,309.80.