Gold prices in Dubai were positioned to end the week lower as persistent inflation worries and elevated energy costs pushed bond yields higher and strengthened expectations of another interest rate hike by the US Federal Reserve, Gulf News reported. In the UAE retail market, 24-karat gold traded at Dh514.25 per gram on Friday, unchanged from the previous day's close but down roughly Dh40 compared to Dh554.50 recorded on August 27.
Other retail denominations also reflected the monthly softening. As of Friday, 22-karat gold in Dubai was priced at Dh476.25 per gram, while 14-karat gold stood at Dh305.25 per gram. In international markets, spot gold ticked up 0.02% to trade at $4,263.34 an ounce at 9:30 am in Dubai, though it remained approximately 2% below its level from the previous Friday. Spot silver rose 0.01% to $63.55 an ounce.
Crude oil prices pulled back after rising more than 7% across the previous two sessions, amid reports that negotiators were exploring a phased agreement under which Iran would reopen the Strait of Hormuz in exchange for the lifting of a US port blockade. Gold prices have closely tracked energy market fluctuations and monetary policy expectations, as rising borrowing costs typically weigh on non-yielding bullion.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, stated that gold remains comfortably above its June-July lows near $4,000 despite headwinds in traditional macroeconomic drivers. Hansen added that there has been little evidence of investor liquidation typically triggered by rising real yields, citing unbending Chinese demand as an essential pillar holding up the metal.
Sources
- Gulf News · 2026-09-25
