Gold was relatively steady in the UAE on Thursday, with prices only falling slightly from the previous day. This dip is driven by hawkish US monetary policy and declining investment appetite as the market tries to balance the effects of high inflation.
24K gold opened at AED 547.25 per gram, slightly lower than AED 548.25 the previous day. Other categories also saw mild declines:
22K Gold: AED 506.75
21K Gold: AED 486.00
18K Gold: AED 416.50
14K Gold: AED 325.00
Internationally, spot gold rose to $4,618.01 an ounce, while spot silver was up almost 2%, trading at $72.16. This suggests that the market favors silver more than gold. The yellow metal is influenced by its safe-haven status, interest rates, and liquidity.
The US Federal Reserve’s stance on interest rates is the primary factor driving market trends. The rates have remained unchanged despite a spike in inflation to 3.3% in March 2026, suggesting a drop in optimism about imminent rate cuts.
Financial analyst Vijay Valecha of Century Financial said, “US inflation rose to 3.3% in March 2026 from 2.4% in February, driven by a 12.5% increase in energy costs, with gasoline up 18.9% and fuel oil rising 44.2%.”
A critical market force is ETF flows. There were massive redemptions amounting to $13 billion in gold-backed ETFs in March. This represents one of the largest monthly redemptions ever recorded. Even though there have been inflows into the market during April, they are not sufficient to counter previous declines.
Gold appears solid on the outside, but the underlying base lacks solidity. Interest rate increases are undermining its attraction, and there is a dip in the ETF inflows. Unless there are changes in the inflation picture or policies, gold will probably be constrained in its range with little upward movement.
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