By: Economy Middle east

Gold prices declined by 0.95 percent on Tuesday, extending a downward trend for a tenth consecutive session due to a robust U.S. dollar and diminishing expectations for near-term interest rate cuts by the Federal Reserve. 

As of 09:47 am Dubai time, spot gold fell 0.95 percent to $4,362.74 per ounce. This follows a previous session where the metal dropped to $4,097.99 per ounce—its lowest level since November 24—before recovering some losses, according to Reuters. 

Additionally, U.S. gold futures for April delivery decreased 0.92 percent to $4,398.51. 

The strengthening dollar on Tuesday made greenback-priced bullion more expensive for those holding other currencies, further weighing on the metal.

Similarly, silver fell 2.16 percent to $67.61. 

Within the UAE, gold rates experienced a sharp decrease by 9:44 am Dubai time. The price of 24K gold fell AED8.25 to AED522.50, while 22K gold dropped AED7.75 to AED483.75. Furthermore, 21K gold decreased AED7.25 to AED464.00, 18k gold declined AED6.25 to AED397.75, and 14k gold fell AED4.75 to AED310.25.

Markets price rate hikes

Analysts suggest that markets are currently pricing in interest rate hikes, reasoning that the conflict involving Iran will drive inflation and cause global central banks to adopt a more hawkish stance. Since the start of the conflict on February 28, spot gold prices have fallen approximately 18 percent, with the U.S. dollar emerging as a primary safe-haven beneficiary. 

Experts identify immediate support levels for gold at $4,275 and $4,000, while resistance is observed at $4,650 and $4,840. 

Although elevated crude prices—which remained above $100 a barrel—typically fuel inflation and boost the appeal of gold as a hedge, high interest rates continue to weigh on the demand for the non-yielding asset. 

Meanwhile, investors have reduced the probability of a December Fed rate hike to roughly 13 percent, down from over 25 percent in the prior session, per the CME Group’s FedWatch tool.