UAE gold prices moved higher on Thursday after the US Federal Reserve decided to keep interest rates unchanged, creating fresh momentum across precious metal markets. The decision increased investor focus on gold as traders reviewed the central bank’s cautious approach toward inflation and future monetary policy.
Gold retailers across the UAE recorded stronger prices at the start of trading. The 24-karat gold rate reached Dh519.75 per gram on Thursday morning. The price marked an increase from Dh512 per gram recorded the previous day.
Other gold categories also showed gains during early trading. The 22-karat version traded at Dh481.50 per gram, while 21-karat gold reached Dh461.50. Meanwhile, 18-karat gold stood at Dh395.75, and 14-karat gold traded at Dh308.50 per gram.
The latest movement followed the Federal Reserve’s decision in the United States on Wednesday. The central bank kept its benchmark interest rate unchanged as policymakers continued monitoring inflation pressures and economic conditions.
The Fed also adjusted its inflation outlook higher for the end of the year. The update showed that officials remain careful about reducing rates quickly because price growth continues to challenge the economy.
Market participants are now watching future policy signals closely. Financial experts said investors are studying the direction under Fed Chair Kevin Warsh as inflation remains stronger than expected.
Nick Spencer-Skeen, Senior Executive Officer at Lunaro Financial Markets, explained that markets have already reacted to expectations of a tighter policy environment. He said investors now expect possible rate increases in the future because inflation and employment data remain strong.
He added that inflation remains the Federal Reserve’s main concern. Core Personal Consumption Expenditures inflation increased to 3.4 percent year-on-year from 3 percent earlier in the year.
The expert noted that policymakers may focus more on inflation risks. However, he said the central bank may avoid making any immediate commitment toward raising rates.
Gold often benefits when interest rates decline because lower returns from traditional assets can increase demand for precious metals. However, changing expectations around inflation and monetary policy continue to influence prices.
In the UAE, currency conditions also play an important role. Since the dirham remains linked to the US dollar, the UAE Central Bank kept its benchmark rate unchanged at 3.65 percent after the Fed announcement.
Earlier reports showed that the Federal Reserve increased its inflation forecast for the Personal Consumption Expenditures index. The index remains a key measure used by policymakers when evaluating price stability.
The central bank said future decisions will depend on economic data and inflation progress. As a result, investors expect continued market adjustments in the coming months.
The rise in UAE gold prices reflects broader global uncertainty and changing expectations around interest rates. Consumers, traders, and investors continue to monitor gold movements as financial conditions evolve.
Analysts believe precious metals will remain sensitive to inflation reports, labour market data, and future Federal Reserve decisions. The next policy signals could determine whether gold continues its upward trend or faces renewed pressure.
