Dubai: Gold prices in Dubai went up on Tuesday, getting back some of what was lost the day before. This happened because of worries about politics in different parts of the world and what people think the Federal Reserve might do next.
The cost of 24K gold went up to 489.25 dirhams per gram. That is 3.75 dirhams more than on Monday, when it was 485.50 dirhams. Other types of gold also went up. 22K gold is now 453 dirhams per gram. 21K went to 434.25 dirhams. 18K reached 372.25 dirhams.
This increase came after a drop at the start of the week. Gold prices stayed much the same at the beginning of August. Then they went down a little on Monday. They came back up when more people started buying gold because of more uncertainty in the world.
Globally, gold was trading close to 4,060 dollars per ounce. Investors are watching what is happening in the Middle East and what the US Federal Reserve is saying. There are talks between the US and Iran. These talks are making financial markets watchful. If things get better, it could affect oil prices and other costs.
People who work in the market are also looking at bond markets. Officials in Japan and the US have said they are trying to keep currency markets steady. Experts say if the US Treasury gets involved, it could change the interest rates on bonds. Those interest rates are very important for how much people want to buy gold. When bond rates go up, gold is less attractive. When they go down, gold becomes more appealing.
What the Federal Reserve will do next is another reason for changes in gold prices. Even though the Fed kept interest rates unchanged at its meeting, investors are still thinking about what will happen next. Inflation is still a problem. Some important Fed officials have said inflation might ease this year. That has made people think that interest rates might stay the same for a while.
For people in the UAE, the latest rise in gold prices means that buying gold for jewellery is more expensive than it was at the beginning of the week. Sellers say that gold prices are still very sensitive to politics, what people think about interest rates, and changes in money. More changes in price are still possible in the next few days.
