Dubai Gold Prices Rise, Then Dip After Fed Rate Hike

Sep 17, 2026

73 min

Sep 17, 2026 05:30

Dubai gold prices rise after Fed rate hike, but pare gains soon

## Initial Price Surge

On September 17, gold prices in Dubai experienced an uptick following the U.S. Federal Reserve's decision to raise interest rates. This move aligned with a global increase in bullion prices, which climbed by 1.3% to nearly $4,320 per ounce.

## Price Adjustment

Despite the initial rise, gold prices soon adjusted. The 24-karat gold traded at Dh515.75, up from Dh512 the previous day, while 22-karat gold was priced at Dh477.50 per gram. However, bullion prices eventually settled below $4,300 per ounce, trading at $4,295.

## Impact of Treasury Yields

The retreat in gold prices coincided with a pullback in U.S. Treasury yields, which had surged to their highest levels since 2024. High yields typically exert pressure on gold, as it does not offer interest returns. Market Analyst Linh Tran noted that gold might consolidate with a slight downside unless Treasury yields and the U.S. dollar decrease, or economic data shifts expectations for further rate hikes.

## Fed's Future Projections

The Federal Reserve's median rate projection for the end of 2026 increased to 4.1%, suggesting more rate hikes could be on the horizon. Fed Chair Kevin Warsh highlighted ongoing inflation concerns, with several goods and services still showing price increases above 3% over recent months.

## Broader Market Effects

Spot gold fell by 1.14% on Thursday, and silver also declined, trading at $63.73, down 1.3%. Meanwhile, the Bloomberg Dollar Spot Index rose by 0.1% after a 0.5% increase the previous day.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents

LinkedIn X Facebook WhatsApp Telegram