Gold prices in the UAE and Saudi Arabia have increased, reflecting global market trends and anticipation of a potential interest rate cut by the US Federal Reserve. In the UAE, 24-carat gold traded between Dh 402.25 (Rs 9,565.44) and Dh 406.50 (Rs 9,666.51) per gram, closing at Dh 406.25 (Rs 9,660.56) on August 23. Similarly, in Saudi Arabia, 24-carat gold ranged from SAR 413 (Rs 9,608.25) to SAR 418 (Rs 9,724.57) per gram, finishing the week at SAR 418.

Global Market Trends

Globally, gold prices ended higher on Saturday, with spot prices closing at $3,371.73 (Rs 2,94,372.17) per ounce, up 0.99% for the day. According to analysts, the increase is linked to safe-haven demand driven by anticipation of policy guidance at the Federal Open Market Committee (FOMC) meeting on September 16-17. A potential rate cut could weaken the dollar, making gold more attractive to investors ¹.

Outlook and Predictions

Analysts expect gold prices to remain in a consolidation phase in the near term but predict a positive bias due to heightened expectations of a US Federal Reserve rate cut. Upcoming US macroeconomic data, including Q2 GDP and PCE inflation, will provide insights into the monetary policy stance and influence bullion sentiment. Geopolitical developments, such as the Russia-Ukraine peace process and trade tariffs, will also be closely monitored ².