Gold prices in Dubai were recovered on Thursday morning, October 1. The 24k variant was gaining AED 4 after lower oil prices and easing expectations of US federal interest rates.
The 24K variant was trading at AED 503.75 per gram, which was AED 499.75 at the close of the market on Wednesday. The other variants of the yellow metal, 22K, 21K, 18K, and 14K, were trading higher at AED 466.5, AED 447.25, AED 383.25, and AED 299 per gram, respectively.
Globally, spot gold stood at USD 4,180 per ounce, up 0.6%, while silver stood at USD 61.2 per ounce, up 1.59%.
Vijay Valecha, financial analyst and CIO at Century Financial, said that gold recovered after reaching a key technical support level. Valecha linked the easing in oil prices to a recovery in regional crude exports. He said exports had returned to around 80% of pre-war levels. He also highlighted risks that could affect gold's recovery. Persistent inflation concerns could influence expectations around future interest rate increases.
“Investors have dialled back the probability of an October rate hike to nearly 50 per cent, compared with previous estimates of 70%,” Valecha said.
He referred to comments from New York Fed President John Williams. The comments suggested that one more rate adjustment could be sufficient later this year. US Treasury yields are another factor being watched. Valecha said the 30-year Treasury yield had moved above 5.61%, reaching its highest level since 2002.
He also pointed to upcoming US economic data. The core personal consumption expenditures price index and non-farm payrolls report could influence gold's near-term direction. Valecha said gold could retest support near USD 4,120 before making further gains.
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