Dubai gold prices gain Dh6 per gram as Fed raises interest rates

Gold prices in Dubai moved higher on Thursday morning following the US Federal Reserve’s decision to raise interest rates by 25 basis points.

24K Gold Trades at Dh518 Per Gram

At the opening of markets on Thursday, 24K gold was priced at Dh518 per gram, up from Dh512 at Wednesday’s close.

Other gold variants also recorded gains:

22K: Dh479.50 per gram
21K: Dh459.75 per gram
18K: Dh394.25 per gram
14K: Dh307.50 per gram

Global Gold Prices Decline

Despite the rise in Dubai prices, international gold prices were trading lower. Spot gold stood at $4,297.61 per ounce, down 1.13% as of 9:10am UAE time.

The metal has declined from its August peak of around $4,692 per ounce.

Silver prices also fell, with spot silver trading at $63.72 per ounce, down 1.12%.

Following the US Federal Reserve’s decision, the UAE Central Bank raised its base rate by 25 basis points to 3.9%.

The move reflects the UAE’s monetary policy approach, with the dirham’s peg to the US dollar closely linking domestic interest-rate decisions with those of the US Federal Reserve.

Gold Outlook Remains Supported in the Medium Term

Vijay Valecha, Financial Analyst and CIO at Century Financial, said gold investors had significantly reduced exposure ahead of the Fed’s rate decision due to uncertainty surrounding the outcome.

He noted that the medium-term outlook remains supported by factors including a recovery in exchange-traded fund holdings from July lows and continued gold purchases by central banks, based on the latest World Gold Council data.

According to Valecha, these factors could help limit further downside once the current interest-rate pressure eases.

Key Gold Support and Resistance Levels

From a technical perspective, Valecha said gold remains within a descending channel that began after its late-August high.

Resistance: $4,352
Stronger resistance: $4,509
Support: $4,273
Next support: $4,200

He said a sell-on-rise strategy remains favoured while gold stays within the descending channel. A decisive move above $4,509 could challenge the current bearish technical structure.

Silver is also showing signs of recovery from support near $62, while remaining within a descending trendline from its early-September high.

Valecha identified:

Resistance: $65.49
Further resistance: Around $66–$67
Key level for an outlook shift: Above $66
According to the analyst, silver could see a stronger change in direction if prices break above the $66 level.