Dubai’s 24-karat gold quote fell to Dh496 per gram Wednesday, staying below Dh500 as traders assessed U.S. interest-rate expectations ahead of next week’s Federal Reserve decision.
Gulf News reported the Wednesday quote, along with rates of Dh459.25 per gram for 22-karat gold and Dh377.50 for 18-karat gold. A Tuesday morning quote in Dubai put 24-karat gold at Dh497 per gram.
Global prices were slightly lower, too. At 1:30 a.m. ET (05:30 UTC), spot gold was down 0.04% at $4,124.31, Gulf News reported. Silver fell 0.75% to $57.39, while platinum gained and palladium lost ground.
The previous day brought wider moves. Gulf News reported that gold swung between a 0.4% gain and a 0.7% loss Tuesday as traders weighed the U.S. rate outlook and prospects for an agreement in U.S.-Iran talks.
Gold pays no interest, making higher rates a potential drag on demand. Gulf News said elevated energy costs were sustaining inflation concerns and the possibility of further Fed tightening.
September brought the Fed’s first rate increase since 2023. Minutes from that meeting show participants expected another increase would likely be appropriate by year-end. Gulf News put the chance of a quarter-point increase at the October meeting at 15%.
Antonio Di Giacomo, senior market analyst at XS.com, said in comments quoted by Gulf News that energy costs, inflation and expectations for restrictive monetary policy were weighing on gold. He identified the Fed meeting and the following personal consumption expenditures release as events traders would watch.
The Fed meets Oct. 27-28 and is scheduled to announce its decision at 2 p.m. ET (18:00 UTC) on Oct. 28. The Bureau of Economic Analysis is scheduled to release personal income and outlays data, which include the personal consumption expenditures measure, at 8:30 a.m. ET (12:30 UTC) on Oct. 29.
