Dubai 24K gold climbs to Dh476.25 as traders price in a December Fed hike

Dubai's 24K gold opened at Dh476.25 a gram on Wednesday, up Dh3 from Tuesday's close, as traders weighed a 75 per cent probability that the US Federal Reserve raises rates in December, according to Dubai Jewellery Group data.

The other grades followed: 22K at Dh441, 21K at Dh422.75, 18K at Dh362.5 and 14K at Dh282.75 a gram. Global spot gold was up 0.44 per cent at $3,947.34 an ounce at 9:10am UAE time, with silver barely moved at $49.73 an ounce.

Tony Sage, chief executive of Critical Metals, said markets also expect a further increase next year, but that a less hawkish Fed could ease the pressure on the metal. He flagged rate rises at other major central banks as a continuing risk, and said progress towards a US-Iran deal and falling oil prices could soften inflation worries and expectations of tighter policy.

Central bank buying remains the firmest support. Sage said official institutions added a net 321 tonnes in the third quarter, the fastest pace since late 2024. Investors are watching the midterm election results and Fed commentary, with stronger inflation or higher crude prices likely to lift yields and weigh on gold, while softer Fed guidance or a Middle East de-escalation could let central bank demand drive a recovery.