Gold prices in Dubai experienced a decline on Wednesday as investors positioned themselves in anticipation of the US Federal Reserve’s forthcoming decision regarding the potential for additional rate hikes by policymakers. Data indicates that the 24K gold price was trading at Dh498.25 per gram at the market open on Wednesday, a decline from Dh504 at the close of the markets on Tuesday. It experienced a decline of Dh5.75 within a single trading session. The other variants of the yellow metal, 22K, 21K, 18K, and 14K, were priced at Dh461.5, Dh442.5, Dh379.25, and Dh295.75 per gram, respectively, reflecting a downward trend in their trading values.

Globally, the spot gold prices decreased by 0.62 percent to $4,134.7 per ounce as of 9:10 AM UAE time. Silver also declined by 0.91 percent to $60.71 per ounce. The precious metal declined as the US dollar gained strength, while investors anticipated the release of the minutes from the most recent Federal Reserve meeting scheduled for later today. “Minutes will clarify ​the Fed’s monetary policy and the degree of support among policymakers for further rate increases and could reshape upcoming hike odds. Subsequent moves in long-term Treasury yields, the dollar, or oil prices ​triggered by any Middle East developments would then amplify the directional impact (on gold),” Frank Walbaum ​said.

According to a separate report, the US dollar is expected to relinquish a significant portion of its recent gains in the forthcoming year. The greenback has experienced an uptick in recent weeks following the interest-rate hike by the Fed in September. At one point, rate futures markets priced in nearly four additional increases, the report stated.