Gold prices in Dubai experienced an upward movement once more on Tuesday morning, with the 24-karat rate reaching Dh534.50 per gram, while the 22-karat gold increased to Dh495. The 24K rate increased by Dh3.75 from Dh530.75 on Monday, while 22K rose by Dh3.50 from Dh491.50, contributing to a month characterised by significant fluctuations in local jewellery prices. Since the beginning of September, consumers monitoring gold for purchases have observed prices fluctuating between Dh522 and Dh542 for 24K. Dubai’s 24K gold price commenced the month at Dh522 on September 1, subsequently increasing to Dh528.25 the next day and achieving a peak of Dh542 on September 3, marking the highest level observed thus far this month.

Prices subsequently declined to Dh532.25 on September 4 and Dh533.75 on September 5 and 6, before dropping to Dh530.75 on Monday and rebounding again on Tuesday morning. The 22K rate has exhibited a comparable trajectory, increasing from Dh483.25 at the beginning of September to Dh502 on September 3. It subsequently fell beneath Dh500, settling at Dh495 on Tuesday morning. Rates for 21K and 18K have also increased since the start of the month. The 21K rate commenced September at Dh463.50 and escalated to Dh481.25 by September 3, whereas the 18K increased from Dh397.25 to Dh412.50 during the same timeframe.

“Gold remains locked in a battle between buyers and sellers, with neither party showing enough conviction to drive a sustained and persistent directional move in the gold price,” said Chris Weston. Weston indicated that various factors contribute to a modestly higher tilt in the balance of risk, with $4,500 continuing to be a significant level for the market. Chinese demand continues to be a focal point of analysis following the People’s Bank of China’s recent acquisition of approximately 630,000 ounces of gold, as reported in its latest purchase. The purchase extended its accumulation program to a 22nd consecutive month and represented its largest monthly addition since 2023, according to Weston. “Continued official-sector buying therefore provides another potential catalyst for upside momentum.”

Gold markets are currently anticipating the release of US producer inflation figures, along with Friday’s core consumer inflation reading. Traders are evaluating the potential implications of this data in the context of the upcoming Federal Reserve meeting next week. Weston observed that the US rates markets presently indicate a 63% likelihood of a Fed rate increase, whereas 68 out of 76 economists anticipate that rates will stay the same. Treasury buyback operations commencing this week represent an additional variable under scrutiny, as any resultant influence on longer-term yields may have implications for gold prices. Weston indicated that ongoing Chinese accumulation, potential US dollar weakness in anticipation of the Federal Reserve meeting, and the Treasury backdrop contribute to a modest upward bias for gold. “$4,500 remains the obvious upside level to watch.”