Gold prices in Dubai stayed largely unchanged on July 27. Investors are waiting for directions from the upcoming US Federal Reserve policy meeting on interest rates. The price of 24K gold stood at AED 492.75 per gram, matching the level seen a month earlier. Other gold categories also showed limited movement, with 22K trading at AED 456.25 per gram, 21K at AED 437.50, 18K at AED375 and 14K at AED 292.50. In global markets, spot gold was trading at $4,093.5 an ounce, up 0.01%. Silver prices stood at $59.4 an ounce, down 0.13%.
Gold prices stayed below the AED 500 mark through most of the previous week. The metal briefly moved above that level on July 22, before settling back. Analysts said that gold is showing a cautious trend in the short term after moving close to the 200-period Exponential Moving Average on the four-hour chart.
Vijay Valecha, CIO of Century Financial in the UAE, emphasized that gold has lost a lot of its earlier weekly gains as rising energy prices increased inflation concerns and expectations of tighter US monetary policy. “Despite the pullback, gold continues to attract buyers around the psychological $4,000 level, helping limit deeper losses. Investors now await next week’s FOMC meeting for further direction on rates,” he added.
Brent crude prices crossed $100 per barrel for the first time since early June as tensions between the US and Iran increased. Higher oil prices have added to inflation concerns among investors.
“Higher energy prices, combined with signs of a resilient US labour market, have strengthened expectations that the Federal Reserve could raise rates this year. Markets are pricing around an 82% probability of a September rate hike. Rising Treasury yields and a firmer US dollar remain key headwinds for non-yielding gold,” Valecha added.
The Federal Reserve’s upcoming decision is expected to influence gold prices, which often react to changes in US monetary policy and dollar movements.
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