emirates7 - Gold prices remained largely unchanged in Dubai on Wednesday morning as investors awaited the outcome of the US Federal Reserve meeting, though the metal continued to find strong support from the ongoing conflict in the Middle East.
The 24K gold was priced at Dh409 per gram, a slight increase from the previous night’s rate. Other variants were also steady, with 22K at Dh378.75, 21K at Dh363.25, and 18K at Dh311.25 per gram. In global markets, spot gold edged up by 0.16% to $3,394.53 per ounce.
Wael Makarem, lead market strategist at Exness, noted that gold prices were holding firm as investors balanced geopolitical uncertainties with expectations surrounding US monetary policy.
He explained that continued tensions in the Middle East and sustained inflows into gold-backed exchange-traded funds (ETFs) were lending support to prices. ETF holdings grew by 21.7 tonnes in the week ending June 13, marking the largest weekly increase since early April and the fourth straight week of gains.
Makarem also highlighted that geopolitical risk remains high, citing Israel’s escalation of strikes on Iranian infrastructure and the persistent war between Russia and Ukraine—both of which have strengthened demand for safe-haven assets like gold.
Looking ahead, he said investors are now focused on the Federal Reserve’s upcoming policy decision. While interest rates are expected to remain unchanged, markets are closely watching the Fed’s updated projections and commentary for hints about potential rate cuts later this year. A dovish stance could enhance gold’s appeal as a non-yielding asset, whereas a more cautious tone might drive up US Treasury yields and put pressure on gold. Market participants are also eyeing upcoming US economic data, including retail sales and industrial production figures, to assess the health of the economy.
The 24K gold was priced at Dh409 per gram, a slight increase from the previous night’s rate. Other variants were also steady, with 22K at Dh378.75, 21K at Dh363.25, and 18K at Dh311.25 per gram. In global markets, spot gold edged up by 0.16% to $3,394.53 per ounce.
Wael Makarem, lead market strategist at Exness, noted that gold prices were holding firm as investors balanced geopolitical uncertainties with expectations surrounding US monetary policy.
He explained that continued tensions in the Middle East and sustained inflows into gold-backed exchange-traded funds (ETFs) were lending support to prices. ETF holdings grew by 21.7 tonnes in the week ending June 13, marking the largest weekly increase since early April and the fourth straight week of gains.
Makarem also highlighted that geopolitical risk remains high, citing Israel’s escalation of strikes on Iranian infrastructure and the persistent war between Russia and Ukraine—both of which have strengthened demand for safe-haven assets like gold.
Looking ahead, he said investors are now focused on the Federal Reserve’s upcoming policy decision. While interest rates are expected to remain unchanged, markets are closely watching the Fed’s updated projections and commentary for hints about potential rate cuts later this year. A dovish stance could enhance gold’s appeal as a non-yielding asset, whereas a more cautious tone might drive up US Treasury yields and put pressure on gold. Market participants are also eyeing upcoming US economic data, including retail sales and industrial production figures, to assess the health of the economy.