Gold prices pull back from March’s early-month peak levels.
Dubai: Gold prices in Dubai inched higher on Wednesday morning, with 24K gold at Dh601 per gram at 9:17 a.m., up slightly from Dh600 the previous day, while 22K rose to Dh556.50 from Dh555.50. However, prices remain Dh40 below the peak levels recorded on March 2, prompting questions about whether now presents a favorable buying window for jewellery shoppers.
On the international market, bullion remains near the $5,000 per kilogram mark, holding close to record highs despite slowing momentum. Investors are balancing the US Federal Reserve’s interest rate outlook against mounting inflation risks fueled by elevated oil prices.
Prices consolidate in a narrow range
Gold’s recent price action shows a clear shift from early-month highs to a more stable range. March opened with elevated levels, as 24K gold reached Dh636 on March 1 and peaked at Dh641 on March 2, before gradually easing during the first half of the month. Prices briefly rallied above Dh628 on March 10 and Dh623 on March 11, marking one of the strongest phases this month.
The momentum soon slowed, with 24K slipping to Dh617.50 on March 12 and continuing to drift toward the Dh600 level. Over the past week, gold has traded within a narrow band of Dh600–Dh604, suggesting a pause after earlier gains. Similarly, 22K gold moved from a peak of Dh593.50 at the start of the month to the current Dh556.50 range.
Global cues keep traders cautious
Gold’s trajectory continues to be influenced by expectations around US monetary policy. While the Federal Reserve is widely anticipated to maintain interest rates, markets remain focused on signals regarding inflation and the potential timing of future rate cuts.
Rising oil prices have added another layer of uncertainty, heightening inflation concerns and constraining the scope for aggressive monetary easing. Higher borrowing costs typically weigh on non-yielding assets like gold, tempering gains even amid robust underlying demand.
Demand supported by risk outlook
Despite the recent consolidation, gold has risen roughly 16% year-to-date, bolstered by sustained demand for safe-haven assets. Investors are weighing the prospects of slower economic growth alongside elevated inflation—conditions that typically support bullion over the medium term.
