Dubai gold recovers Dh2.75 as markets eye US inflation data
Silver and palladium extend losses despite mild gold rebound
DUBAI – Dubai’s gold prices edged higher on Friday, reversing a midweek slide after several days of volatility.
According to the Dubai Jewellery Group, 24K gold stood at Dh495.50 per gram, up from Dh492.75 on Thursday. The rates for 22K, 21K, and 18K gold were Dh458.75, Dh440.00, and Dh377.00 per gram respectively.
Earlier this week, 24K gold was Dh497.25 on Wednesday, Dh523.25 on Tuesday, and Dh514.00 on Monday, marking a fluctuating trend across the five trading days. Despite today’s slight rebound, prices remain notably below the highs seen at the start of the week.
Global market trends
In the international market, spot gold slipped 0.2% to $4,116.09 per ounce as of 0504 GMT, while US gold futures for December delivery dropped 0.4% to $4,131.10. The metal has fallen 3% so far this week, heading for its biggest weekly drop since mid-May. The dollar index rose for a third straight session, making gold more expensive for non-dollar holders.
Global traders are awaiting the delayed US Consumer Price Index (CPI) data, expected to show core inflation holding at 3.1% in September. Investors have nearly priced in a 25-basis-point rate cut by the Federal Reserve next week, a move that could influence bullion’s direction in the short term.
Gold generally benefits from lower interest rates as they reduce the opportunity cost of holding non-yielding assets, but the stronger dollar and easing trade tensions – ahead of US President Donald Trump’s meeting with Chinese President Xi Jinping – have tempered safe-haven demand this week.
Other precious metals
Elsewhere, silver fell 0.5% to $48.67 per ounce, marking its worst week since March with a 6% decline. Platinum edged 0.3% higher to $1,630.60, while palladium slipped 1.8% to $1,430.35.