Gold rate in Dubai falls as inflation concerns, oil buying weigh on bullion

Dubai gold prices eased on Wednesday after a weak start to the week. Renewed inflation concerns and rising oil buying interest pressured the precious metals market, Khaleej Times reported.

What is the gold rate in Dubai today?

The 24K variant traded at Dh523.50 per gram at the market open on Wednesday, down from Dh526 per gram at Tuesday's close. Other karats also slipped, with 22K at Dh484.75, 21K at Dh464.75, 18K at Dh398.50 and 14K at Dh310.75, according to Dubai Jewellery Group data.

How did global gold and silver prices perform?

Spot gold traded at $4,334 per ounce, up 0.11 percent. Silver rose 0.95 percent to trade at $66.66 per ounce, holding firmer than gold despite the broader pressure on metals.

Vijay Valecha, chief investment officer at Century Financial, said metals started the week under pressure. He said inflation concerns and a rise in oil buying, following five sessions of declines, weighed on the market.

Why are oil prices affecting gold rates?

A rise in oil buying interest after five days of declines added pressure to precious metals markets this week. Higher oil prices tend to stoke inflation worries, which in turn shapes how investors position their gold holdings.

Tensions in the Middle East also continued to rise. US President Donald Trump threatened to "annihilate" Iran during his speech at the UN General Assembly on Wednesday.

Valecha said the Iranian delegation's meeting in New York could still raise hopes for diplomacy. He said this might help ease regional tensions.

What is limiting gold's gains this week?

Expectations of a hawkish Federal Reserve are limiting gold's gains this week, Valecha said. The US dollar remained steady near its strongest level in two months, adding further pressure on the metal.

Investors are also watching the upcoming meeting between Trump and Chinese President Xi Jinping on Thursday. Valecha said traders are awaiting updates before making major moves in gold.

He added that gold is likely to stay within its current range. This could change if the Middle East conflict worsens and triggers another surge in oil prices.

What do gold price charts show for this week?

On the technical side, Valecha said gold is losing momentum. He noted that the daily Relative Strength Index has slipped below the 50 level.

Gold prices have stayed largely range-bound this month, he said. Near-term support may lie around $4,261, based on an upward-sloping trendline connecting recent lows.

Silver shows a similar pattern, Valecha said. He pointed to potential support around $63.36, based on lows from mid-August and September.