Gold prices in Dubai steady after four-day rally as investors await Fed clues

Dubai gold prices remained largely stable on Wednesday after recording gains for four consecutive days. The precious metal had gained around 7 per cent last week, supported by a weaker US dollar.

24K Gold Trades at Dh559.25

At the opening of the Dubai market on Wednesday, 24K gold was priced at Dh559.25 per gram, down Dh0.75 from Tuesday's closing price.

Other gold variants were trading at:

22K: Dh517.75 per gram
21K: Dh496.50 per gram
18K: Dh425.50 per gram
14K: Dh332 per gram
Globally, spot gold was trading at $4,642.05 per ounce, up 0.11 per cent. Silver also edged higher by 0.55 per cent to $69.08 per ounce.

Gold Consolidates After Strong Gains

Vijay Valecha, CIO of Century Financial, said gold is entering a consolidation phase after three consecutive weekly gains. The metal had briefly moved close to $4,700 an ounce, reaching its highest intraday level since mid-May.

According to Valecha, the recent rally was supported by a weaker US dollar after the US Treasury indicated plans to increase buybacks of long-dated bonds by at least $14 billion between September 9 and November 4.

With gold having posted three consecutive weekly gains, some consolidation is considered natural, he said.

Jackson Hole Symposium in Focus

Investors are now turning their attention to the Jackson Hole Symposium, where Federal Reserve Chair Kevin Warsh is scheduled to speak on Friday.

Markets are expected to closely watch his comments for clues about the Federal Reserve's approach to inflation and interest rates, which could influence gold prices and broader financial markets.

Central Bank Buying Supports Gold

Valecha said positioning in gold remains favourable, supported by increased holdings among money managers, continued central bank purchases and a narrowing gap between spot and futures prices.

Geopolitical tensions are also strengthening gold's appeal as a portfolio hedge. Concerns include potential US economic measures against Iran and rising tensions between Washington and Canada following stalled trade negotiations.

Gold Faces $4,651 Resistance

From a technical perspective, gold faces an immediate resistance level around $4,651 an ounce.

A sustained break above this level could pave the way towards $4,700 and $4,765, while support is expected around $4,560.

Silver Also Gains Momentum

Silver is benefiting from several of the same factors supporting gold. Valecha noted that Indian silver imports have started recovering, with around 90 tonnes entering through the India International Bullion Exchange in August after six months of inactivity.

Further shipments could help ease supply tightness as jewellers prepare for India's upcoming festival and wedding season.

However, imports would need to more than double during the second half of the year to approach 2025 levels.