Dubai gold rates edge higher to Dh523.50 as dollar strength weighs on bullion
Silver slips as precious metals face pressure from stronger rates
DUBAI – Dubai gold rates edged higher on Wednesday, with the latest Dubai Jewellery Group figures showing a modest increase in the price of 24K and 18K gold.
The movement comes as international bullion prices remain under pressure from expectations that major central banks could keep interest rates elevated for longer.
A firmer US dollar and developments surrounding the Iran conflict are also keeping precious metals markets in focus.
Dubai gold rates
The Dubai Jewellery Group’s suggested retail gold jewellery prices for Wednesday show 24K gold at Dh523.50 per gram, up 25 fils from Dh523.25 on Tuesday. The 22K rate remained unchanged at Dh484.75 per gram, while 18K gold rose 25 fils to Dh398.50 from Dh398.25.
The latest prices remain below Monday’s levels. On September 21, 24K gold stood at Dh525 per gram, making Wednesday’s rate Dh1.50 lower. The 22K price has fallen by Dh1.25 from Monday’s Dh486, while 18K gold is down Dh1 from Dh399.50.
The relatively small daily moves come against a backdrop of cautious trading in international gold markets, where investors are assessing the outlook for interest rates, inflation and geopolitical risks.
Global bullion
Spot gold fell 0.2% to $4,345.55 an ounce as of 0435 GMT on Wednesday, while US gold futures for December delivery rose 0.2% to $4,383.10.
The US dollar held near its strongest level in two months. A stronger dollar typically weighs on gold because the metal is priced in the US currency, making bullion more expensive for buyers using other currencies.
Interest rate expectations are another major factor. The US Federal Reserve raised its benchmark rate by 25 basis points last week to a range of 3.75% to 4.00%, while signalling that another increase could come before the end of the year. Federal Reserve Bank of Boston President Susan Collins said she supported the decision, citing risks that inflation could remain above the central bank’s 2% target.
The outlook is also being shaped by developments in the Middle East. US President Donald Trump warned of severe action against Iran if no agreement is reached to end the conflict, while also indicating that a deal could be possible soon amid diplomatic efforts at the United Nations.
Silver and oil
Oil prices and developments around the Strait of Hormuz remain important for gold markets because movements in energy costs can influence inflation expectations and interest rate outlooks.
Among other precious metals, spot silver fell 0.6% to $66.70 an ounce. Platinum declined 1% to $1,815.11, while palladium dropped 0.5% to $1,301.60.