Gold prices rose on Friday after U.S. inflation data supported a second interest rate cut by the Federal Reserve in November.
In the UAE, gold rates surged AED3.50, with 24-carat gold rising to AED320.25 and 22-carat gold increasing to AED296.50. Meanwhile, 21-carat gold reached AED287.25 and 18-carat hit AED246.
Globally, spot gold gained 0.44 percent to $2,644.33 as of 5:14 GMT while U.S. gold futures rose 1.37 percent to $2,661.85.
The U.S. dollar index declined 0.10 percent to 102.89, making bullion more attractive to other currency holders.
U.S. inflation data
Gold prices rose after data on Thursday revealed that U.S. consumer prices rose slightly more than expected in September, while jobless claims increased to 258,000 in the week ending on October 5. Market focus now shifts to the U.S. Producer Price Index (PPI) report due today at 12:30 GMT.
Gold prices have held comfortably over the $2,600 level, witnessing short-term gains on recent positive economic indicators. If the PPI data also comes in softer, gold prices will likely continue their upward trajectory.
Markets currently see an 87.9 percent chance of a 25-basis-point rate reduction in November and a 12.1 percent chance of the Fed keeping rates unchanged, according to the CME FedWatch.
Mideast tensions persist
Tensions in the Middle East persisted, raising concerns for a wider regional war. Analysts noted that an escalation in the Middle East situation could further support gold prices. Gold shines in a low-interest-rate environment, further supported by economic and political uncertainty.
Read: UAE gold prices down, global rates inch up ahead of key U.S. inflation data
Other precious metals
Among other metals, spot silver rose 0.38 percent to $31.31 per ounce while platinum gained 1.07 percent to $977.55, and palladium inched up 1.14 percent to $1,081.50.
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