Prices of the yellow metal are currently experiencing a consolidation phase, with spot gold trading at $4150 levels following its most significant weekly decline of 3.4 percent since June. Investors are evaluating the implications of weaker US hiring alongside increasing bond yields on the Federal Reserve’s forthcoming decisions regarding interest rates. In the UAE, prospective gold buyers may experience some relief from the levels observed in mid-September. 24-karat gold is priced at Dh498 per gram, falling below the Dh500 threshold. 22-karat is currently valued at Dh461, while 18-karat is available for Dh379 per gram. The lightweight jewellery crafted from 14-carat gold is likely to attract numerous buyers, given that its price has decreased to Dh295.50 as of Monday.

US employers added only 29,000 jobs in September, according to figures released on Friday, falling short of the lowest estimate in a Bloomberg poll of economists. The weak print alleviated the urgency for the Fed to raise borrowing costs promptly in order to address persistent inflation. Markets currently estimate a probability of approximately 20% for an interest rate increase in October, a decline from the roughly 70% expectation observed just a week prior. Gold provides no yield; therefore, increasing interest rates typically exert downward pressure on its demand. Inflation pressures persist; nonetheless, oil prices increased as the conflict in the Middle East continued to escalate.

In the latest development, Yemen’s Saudi-backed leaders have initiated an offensive aimed at reclaiming all territory currently under the control of the Iran-backed Houthis. Treasury Secretary Scott Bessent minimised worries regarding elevated borrowing costs, asserting that they align with global trends, despite certain rates reaching their peak in over twenty years. Concerns regarding inflation, driven by rising energy costs and potential interest rate increases in the United States, led to a decline in gold prices of over 6% last month. Fed policymakers, however, have minimised the likelihood of a near-term increase.

The record of the Fed’s September meeting, during which it raised rates for the first time in three years, is set to be released midweek and may provide insights into future actions. Currently, spot gold is trading slightly higher by 0.3 percent at $4,151.92 levels. Silver increased by 1.3 per cent to $61.45 an ounce, recovering from a decline of over 6 per cent last week, marking its most significant drop since mid-July. Platinum and palladium experienced upward movement. The dollar gauge from Bloomberg exhibited minimal movement, maintaining stability after three successive weeks of gains.