Gold inched up on Monday, October 12, as declining oil prices tempered inflation concerns, according to Gulf News. The price drop in energy commodities prompted traders to raise expectations that the US Federal Reserve may pause interest rate increases. Globally, bullion traded slightly lower at $4,190.15 after temporarily crossing the $4,200 threshold during early morning trade.
In the UAE, retail gold prices remained stable over the weekend. According to Gulf News, 24-karat gold held above Dh500 at Dh505.50 per gram, 22-karat was priced at Dh468, 18-karat reached Dh384.75, and 14-karat traded near Dh300.
Brent crude fell to approximately $103 per barrel (Dh378). Traders anticipated reduced supply pressure following statements by US President Donald Trump indicating that Russia and Ukraine had agreed to an energy ceasefire, though detailed terms have not been disclosed by either side. Meanwhile, 30-year US Treasury yields dropped on Friday, and US debt markets were closed on Monday for a holiday.
Physical and investment demand also provided support, with gold-backed exchange-traded funds expanding holdings and China's central bank buying gold at a faster pace. However, gold remains approximately 20 percent below earlier levels following declines that began with the US-Iran conflict in late February, which disrupted Middle East energy supplies and spurred interest rate hikes by several central banks.
Investors are monitoring upcoming macroeconomic events, including US inflation figures scheduled for Wednesday, October 14. Federal Reserve Chair Kevin Warsh is scheduled to speak at the International Monetary Fund's annual meeting in Bangkok on Thursday, October 15, alongside scheduled addresses by Fed Governor Christopher Waller and Cleveland Fed President Beth Hammack.
Sources
- Gulf News · 2026-10-12
