Dubai Gold Prices Rebound as 24K Rate Rises to Dh503.75 per Gram

Gold prices in Dubai rose at the opening of markets on Thursday, October 1, with the 24-carat rate increasing by Dh4 per gram.

Gold had previously fallen below the Dh500 mark in the previous session.

The 24K gold rate reached Dh503.75 per gram, compared with Dh499.75 at Wednesday's market close.

The increase came as lower oil prices and changing expectations around US interest rates provided some support to the precious metal.

Dubai Gold Prices Today

Several gold categories recorded higher prices at the opening of Thursday's markets.

Gold Rates Per Gram

• 24K gold: Dh503.75

• 22K gold: Dh466.50

• 21K gold: Dh447.25

• 18K gold: Dh383.25

• 14K gold: Dh299.00

The rise was not restricted to the 24K category, with other commonly purchased gold variants also trading higher.

Why Are Gold Prices Rising in Dubai?

The latest recovery in Dubai's gold market came amid several developments in global financial markets.

Gold received support as oil prices eased and expectations of an October US interest-rate increase weakened.

Investors had reportedly reduced the estimated probability of another rate hike to a little over 50%, compared with earlier expectations of around 70%.

Meanwhile, gold remains highly sensitive to inflation, changes in interest-rate expectations and movements in US Treasury yields.

Global Gold and Silver Prices

Internationally, spot gold was trading at around $4,180 per ounce, up 0.6% as of 9:02am UAE time.

Silver also moved higher, rising 1.59% to reach approximately $61.20 per ounce.

What Could Influence Gold Prices Next?

Market watchers are continuing to monitor upcoming US economic data, including inflation and employment figures.

These indicators could influence expectations for future interest-rate decisions and, in turn, affect gold prices.

Rising US Treasury yields are another factor that could put pressure on bullion.

The 30-year Treasury yield recently crossed 5.61%, its highest level since 2002, according to the report.

Gold Market Outlook

For Dubai shoppers and investors, gold prices could continue to fluctuate as international markets respond to economic data, interest-rate expectations and developments in energy markets.