UAE gold prices hold near lows as dollar stays firm

In Dubai, 24-carat gold opened at 498 dirhams a gram on Oct. 5, versus 499 dirhams last weekend and 505.50 dirhams on Sept. 28, according to Dubai Jewellery Group data. The retreat reflects pressure from global markets, where spot gold slipped 0.18% to $4,132.20 an ounce even as silver rose 0.84% to $60.92.

The key macro driver is the US dollar, which makes bullion more expensive for buyers using other currencies when it strengthens. Higher US bond yields are adding to the drag, with the 30-year Treasury yield above 5.61%, limiting gold’s appeal because the metal pays no income.

For investors, that leaves gold caught between two opposing forces: softer odds of another Federal Reserve rate increase and still-firm yields. Markets are watching upcoming US personal consumption expenditures data and labor reports, which could shape the Fed’s next move and reset expectations for bullion.

Gold has also been volatile in recent weeks, with Dubai prices swinging sharply after 24-carat gold reached 505.50 dirhams a gram on Sept. 28 before easing back. That kind of churn tends to favor traders and hurt retail buyers who delay purchases, while bullion-linked funds and miners remain sensitive to any renewed break in US rates or dollar strength.

The next catalyst is US economic data and Fed commentary, which will determine whether the current slide extends or whether lower rate expectations give gold another leg higher.