Dubai gold prices stayed near recent highs on the morning of August 27, as investors looked for fresh clues on the US Federal Reserve’s interest-rate path.
The 24K gold price opened at AED 556.50, higher than the AED 554.25 recorded at Tuesday’s market close. The 22K rate stood at AED 515.25, while 21K gold traded at AED 494. The 18K and 14K rates were AED 423.50 and AED 330.25, respectively.
In global markets, spot gold was trading at USD 4,620 an ounce, up 0.49%. Silver also gained 1.41% to reach USD 69.01 an ounce.
Vijay Valecha, CIO of Century Financial, said gold was holding firm after the US Treasury indicated plans to increase buybacks of longer-dated bonds. The move put pressure on the dollar and supported bullion prices.
“Thus, it is only natural for gold to consolidate after three back-to-back weekly gains,” Valecha said.
Gold briefly approached USD 4,700 an ounce, reaching its highest intraday level since mid-May. Investors are now turning to the Jackson Hole Symposium, where Fed Chair Kevin Warsh is scheduled to speak on Friday.
Valecha emphasized that the speech could provide signals on the Fed’s view of inflation and interest rates. Those indications could influence the direction of gold in the near term.
Market positioning also points to continued interest in the metal. Options data showed stronger demand for upside exposure in major gold exchange-traded funds.
Money managers have raised their gold holdings, while central bank purchases have also provided support. The narrowing difference between spot and futures prices has added to the positive market backdrop.
Gold is also drawing support as investors assess geopolitical and trade tensions. The US threatened economic measures against Iran and warned countries dealing with Tehran of possible consequences.
Trade tensions with Canada have also intensified. Such developments are adding to gold’s appeal as a hedge, keeping prices elevated as markets await clearer signals from the Federal Reserve.
Also Read: Dubai Gold Rate Today: 24K Gold Climbs to Dh547 Per Gram, Up Dh60 in August