Dubai gold prices shed Dh3.75 on Thursday as investors remain wary of rate hikes

Gold prices in Dubai declined by Dh3.75 per gram on Thursday as investors remained cautious about the possibility of further US interest rate hikes next month. The drop reflects continued pressure on the precious metal amid changing expectations around the Federal Reserve's monetary policy.

24K Gold Falls to Dh479.25 per Gram

The 24K gold rate opened at Dh479.25 per gram on Thursday, down from Dh483 recorded previously.

Other gold categories also registered declines:

22K gold: Dh443.75 per gram
21K gold: Dh425.50 per gram
18K gold: Dh364.75 per gram
14K gold: Dh284.50 per gram

International gold prices also moved lower, falling 0.48% to $3,973.72 per ounce as of 9:14 AM UAE time.

Silver prices declined by 1.21% to $51.37 per ounce during the same period.

Financial analyst Vijay Valecha described Wednesday's brief recovery in gold prices as a technical retracement. He noted that investors are waiting for the next major market catalyst before making further moves.

Investors Expect Possible US Rate Hike in December

According to CME FedWatch data, investors are currently pricing in a 90.8% probability of a US interest rate increase at the Federal Reserve's December 9 meeting.

Century Financial Chief Investment Officer Vijay Valecha said Federal Reserve officials Michelle Bowman and Anna Paulson had highlighted that controlling inflation remains a priority, with further rate increases still possible.

Higher interest rates generally reduce gold's appeal because the precious metal does not generate interest or regular income. As a result, investors may prefer interest-bearing assets when borrowing costs and returns rise.

Gold Price Technical Levels Indicate Bearish Outlook

Valecha also highlighted several important technical levels that investors should watch.

Resistance levels: $4,068, $4,144 and $4,193 per ounce.

Support levels: $4,030, $3,957, $3,913 and $3,877 per ounce.

He explained that gold remains under pressure while trading below the $4,144 resistance level. A break below the $3,957 support level could expose the market to further declines towards $3,913 and $3,877.

The latest decline offers Dubai gold buyers a lower price compared with the previous trading session. However, global economic developments, US Federal Reserve decisions and inflation trends could continue influencing gold prices in the coming days.

Buyers planning to purchase gold should monitor daily UAE gold rate updates before making their decisions.