Gold experienced a slight increase following a decline that brought it to a nine-week low on Wednesday. Recent tensions in the Middle East have heightened concerns regarding inflation, leading traders to anticipate at least one additional rate hike by the Federal Reserve in 2026. Gold experienced an increase of approximately 0.8%, reaching around $4,140 per ounce, marking a recovery from the prior session’s close, which represented its lowest level since early August. On Wednesday, projectiles struck a tanker off the coast of Qatar, marking an unusual incident in the central region of the Persian Gulf.

Separately, reports indicate that the White House is considering military action against Iranian targets prior to the November midterms. Other metals also strengthened as buyers in China resumed activity following a week-long holiday that had suppressed trading across Asia, contributing to the support for bullion. In the UAE, gold prices experienced an overnight adjustment of approximately Dh4, with 24-karat gold rising to Dh498 from Dh494. On Thursday, 18-karat gold is priced at Dh379, while 14-karat gold is available at Dh295.75.

Even after Thursday’s bounce, gold has experienced a decline of approximately 20% since the onset of the US-Iran conflict in late February. Soaring energy costs have contributed to inflationary pressures, prompting central banks to initiate tightening measures, which adversely affects a non-yielding metal. The Dollar Spot Index has been hovering close to the apex reached earlier this year. A stronger dollar typically results in higher costs for bullion for the majority of purchasers.

“The Fed minutes have kept gold under a stubborn ceiling, with policymakers still united in their inflation fight but divided over whether September’s hike was a precaution or the beginning of a tougher tightening campaign,” said Hebe Chen. Spot gold increased by 0.34% to $4,128.27 per ounce at 09:30 a.m. in Dubai. Silver experienced a decline of 0.40 percent, settling at $59.79, following a decrease of 2.5 percent in the prior session. Platinum and palladium experienced an upward movement. The dollar gauge exhibited stability following a 0.3% increase the previous day.