Dubai gold price holds at Dh409 as Iran, Israel tensions escalate
Gold rates steady as investors monitor Fed and Middle East
DUBAI: Gold prices in Dubai remained largely unchanged on Wednesday, reflecting steady demand amid continued geopolitical unrest and anticipation of a key interest rate decision from the US Federal Reserve.
Traders in the emirate saw only minor fluctuations across most carat variants, while global spot gold prices nudged higher.
Dubai gold rates
The 24-carat gold rate in Dubai stood at Dh409 per gram, slightly up from the previous day’s close. The 22K variety was trading at Dh378.75 per gram, while 21K and 18K were priced at Dh363.25 and Dh311.25 respectively. Internationally, spot gold was quoted at $3,394.53 per ounce, up 0.16 per cent, with US futures hovering at $3,413.2 per ounce.
Global drivers
The ongoing military conflict between Iran and Israel continues to bolster demand for safe-haven assets like gold. This geopolitical instability is coupled with uncertainty around monetary policy in the US, where the Federal Reserve is widely expected to keep interest rates steady. However, market participants are closely watching for any signals on future rate cuts or changes in economic projections.
Investor sentiment
Gold-backed exchange-traded funds have seen sustained inflows, with 21.7 tonnes added in the week ending June 13 – the highest weekly increase since early April. Despite mixed US economic data, including weaker-than-expected retail sales and industrial output, the yellow metal continues to attract cautious investor interest amid fears of prolonged conflict in multiple regions.
Spot silver slightly dipped to $37.22 per ounce, while platinum rose to $1,266.04 and palladium to $1,054.63.