Dubai Gold Prices Drop to One-Month Low Following Fed Policy Update

Dubai gold prices fell to their lowest level in nearly a month on Thursday, tracking a sharp decline in global precious metal rates. The drop follows the U.S. Federal Reserve’s latest policy meeting, where officials signaled a "higher-for-longer" interest rate environment, dampening investor appetite for non-yielding assets like bullion. Retail rates in Dubai In the local Dubai market, 24K gold was trading at Dh281.50 per gram on Thursday morning, down from Dh285.50 at the previous day’s close. Other variants also saw significant price corrections; 22K gold dropped to Dh260.75, 21K was priced at Dh252.25, and 18K gold stood at Dh216.25 per gram. These figures represent the most affordable entry point for jewelry buyers in the UAE since early May. Global market pressures The downward trend is driven by a strengthening U.S. dollar and rising Treasury yields after the Federal Reserve opted to maintain interest rates between 5.25% and 5.5%. While inflation data showed a slight cooling, the central bank’s updated "dot plot" suggested only one rate cut might occur before the end of 2024, cooling previous market expectations of multiple reductions. Spot gold fell approximately 1%…