24-karat gold trades at Dh515.75, while 22-karat gold is priced at Dh477.50.
Dubai: Gold prices in the UAE moved higher on September 17, tracking gains in global bullion, which climbed as much as 1.3 per cent to nearly $4,320 an ounce before giving back some of its gains.
In the UAE, 24-karat gold was trading at Dh515.75 per gram, up from the previous day’s close of Dh512, while 22-karat gold was priced at Dh477.50 per gram on Thursday.
Global bullion prices eased after the initial surge, slipping below the $4,300-an-ounce mark to trade at around $4,295 at the time of publishing. The reversal followed a more hawkish-than-expected signal from the US Federal Reserve, which raised concerns over the possibility of further interest-rate increases.
Pullback in Treasury yields
US Treasury yields eased after climbing to their highest levels since 2024, following the Federal Reserve’s unanimous decision on Wednesday to raise interest rates by a quarter percentage point.
The retreat in yields provided some support for gold. As a non-interest-bearing asset, gold typically faces greater pressure when bond yields rise, as higher yields can make interest-paying investments more attractive.
According to Linh Tran, Market Analyst at XS.com, gold could remain in a consolidation phase in the near term, with some downside pressure. A stronger recovery may depend on a decline in US Treasury yields and the dollar, or economic data that prompts markets to scale back expectations of another interest-rate increase.
Meanwhile, the Federal Reserve’s median projection for interest rates at the end of 2026 increased to 4.1 per cent from an earlier estimate of 3.8 per cent, indicating expectations of further rate hikes.
During his post-decision briefing, Fed Chair Kevin Warsh highlighted persistent inflation risks, noting that several categories of goods and services continued to record price increases above 3 per cent over both six- and 12-month periods.
Spot gold fell 1.14 per cent on Thursday, while silver also moved lower, dropping 1.3 per cent to trade at $63.73.
Meanwhile, the Bloomberg Dollar Spot Index, which tracks the performance of the US currency, edged 0.1 per cent higher after gaining 0.5 per cent on Wednesday.
