By: Economy Middle east

Gold prices rose slightly on Wednesday as global investors awaited important insights from the latest U.S. Federal Reserve policy meeting minutes and upcoming U.S. employment data. The bullion market is characterized by low volatility, balanced between a strong U.S. dollar and cautious optimism regarding potential monetary easing.

In the UAE, gold rates saw modest increases: 24-carat gold rose by AED0.25 to AED491.00, while 22-carat gold increased by AED0.75 to AED454.25. Additionally, 21-carat gold saw a rise of AED1.25 to AED436.00, and 18-carat gold also gained AED1.25, reaching AED373.75.

Globally, spot gold saw a modest uptick of about 0.66 percent, trading near $4,092.84 per ounce during early sessions, recovering some losses from the previous day amid strength in the dollar and lowered expectations for immediate Fed rate cuts. Gold futures in New York mirrored this trend, climbing 0.68 percent to around $4,093. Meanwhile, silver traded 1.29 percent higher at $51.35.

Impact of Fed minutes and U.S. jobs report

Market focus is on the Federal Reserve’s meeting minutes due later today, which are expected to indicate policymakers’ cautious approach toward future interest rate cuts. Current market expectations suggest about a 46 percent probability of a 25 basis points rate cut in December, down from over 60 percent just a week ago.

The minutes are likely to reveal a divided Fed adopting a “wait and see” strategy, weighing inflation risks against economic challenges. This division has limited gold’s upward momentum but prevented significant declines, maintaining the potential for easing that supports gold as an inflation hedge and store of value.

The U.S. September jobs report, to be released on Friday, will provide additional insight into the labor market’s health, a crucial economic indicator for Fed policy. Economists anticipate a modest increase of 50,000 jobs, up from 22,000 in August, which could reinforce the Fed’s cautious approach to rate cuts.

Dollar strength and market sentiment

The U.S. dollar index remains relatively strong, putting downward pressure on gold prices by making the metal more expensive for holders of other currencies. However, early indications of improved risk appetite among investors have limited further dollar gains, allowing gold prices to stabilize and recover.

Despite recent price fluctuations, gold’s year-to-date performance remains strong, with over 50 percent gains compared to last year, driven by geopolitical uncertainties, inflation worries, and ongoing central bank purchases. Central banks globally are continuing to diversify their reserves into gold, reinforcing medium-term fundamentals.

Technical analysts point to significant support around the $4,000 level, with resistance between $4,130 and $4,180. Price movements within this range indicate strategic buying by investors on dips and cautious profit-taking at higher levels.

Local currencies and demand patterns have affected gold prices worldwide. In India, for instance, 24-carat gold traded at approximately INR12,522 per gram, a slight decrease from previous days but still reflecting strong buying interest, particularly during festival seasons. Similar trends are noticeable in Middle Eastern and Asian markets, where cultural preferences and investment demand remain robust.