Gold prices declined on Wednesday as investors awaited the Federal Reserve‘s interest rate cut decision later in the day.
In the UAE, gold prices declined by AED0.75 with 24-carat gold inching down to AED311 and 22-carat gold declining to AED288. Meanwhile, 21-carat gold reached AED278.75 and 18-carat gold was at AED239.
Globally, spot gold edged down 0.24 percent to $2,567.75Â as of 5:08 GMT, after hitting a new record high of $2,589.59 on Monday. Meanwhile, U.S. gold futures gained 0.05 percent to $2,593.80.
Read: Three reasons the US Federal Reserve is likely to reduce interest rates on Wednesday
Fed’s first rate cut in over 4 years
Gold prices declined ahead of the U.S. central bank’s meeting where the Fed is expected to announce the first interest rate cut in over four years at 18:00 GMT. Chair Jerome Powell will hold a press conference afterward.
Markets are now pricing in a 65 percent chance of a 50-basis-point rate cut, compared with a 34 percent chance a week ago, and a 35 percent chance of a 25-basis-point cut, according to the CME FedWatch tool.
Recent data revealed that U.S. retail sales unexpectedly rose 0.1 percent in August, suggesting that the economy remained solid through much of the third quarter.
In the Middle East, geopolitical tensions continued to escalate. Political and economic instability traditionally supports gold prices as investors seek to invest in safe assets amid unstable conditions.
In addition, India’s August gold imports surged to $10.06 billion, compared with $3.13 billion in July, according to the trade ministry.
Other precious metals
The precious metals market fell as gold prices declined from their recent record high. Spot silver declined 0.83 percent to $30.48 while platinum lost 0.24 percent to $979.01. In addition, palladium dipped 0.83 percent to $1,106.85.
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