By: Economy middle east

Gold prices declined in both global and UAE markets on Thursday, as investor caution increased ahead of next week's U.S. Federal Reserve meeting and key economic data. In the UAE, 24-carat gold prices fell by AED1.25 to AED505.75 per gram. Globally, spot gold dropped 0.46 percent to $4,182.39 per ounce. Analysts attributed the pullback to profit-taking and a modest rebound in the U.S. dollar but noted that solid fundamentals and expectations of a Federal Reserve interest rate cut should provide underlying support for the metal.

Market focus has shifted to the delayed release of the September Personal Consumption Expenditures (PCE) Index, the Fed's preferred inflation gauge, scheduled for Friday. Market sentiment, as tracked by the CME FedWatch tool, currently reflects an 89 percent probability of a 25-basis-point rate cut at the upcoming Federal Open Market Committee (FOMC) meeting. Among other precious metals, silver also fell, slipping 1.65 percent to $57.51 per ounce after reaching a record high the previous day.