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The 24K variant traded at Dh476.25 per gram in Dubai on Wednesday morning.
Gold prices edged higher on Wednesday, with Dubai bullion rates gaining as investors assessed the possibility of a US Federal Reserve interest rate hike in December, according to Khaleej Times.
The 24-karat gold rate in Dubai stood at Dh476.25 ($129.73) per gram at 9:10 a.m. UAE time, up from Dh473.25 at Tuesday's close, according to data from the Dubai Jewellery Group.
Global spot gold rose 0.44 percent to $3,947.34 per ounce. Silver gained 0.01 percent to $49.73 per ounce.
Why is the Dubai gold rate moving on Fed rate hike expectations?
Tony Sage, CEO of Critical Metals, said markets see a 75 percent chance of a Fed rate hike in December. They also expect another increase next year.
Less hawkish expectations could ease pressure on gold, he said. Rate hike expectations at other major central banks remain a risk.
How could Iran talks and oil prices affect gold?
Sage said progress toward a US-Iran deal could ease inflation worries. A sustained drop in oil prices could do the same and soften expectations of monetary tightening.
Stronger inflation signals or higher crude prices could lift yields and weigh on gold, he said.
Are central banks still buying gold?
Demand from central banks remains strong, Sage noted. They added a net 321 tons in the third quarter, the fastest pace since late 2024.
What should investors watch next for the Dubai gold rate?
Investors are likely to track the outcome of the midterm elections and upcoming Fed comments.
Softer Fed guidance or de-escalation in the Middle East that pushes oil lower could help stabilize the metal. That would let central bank demand drive a recovery.
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