Following the U.S. Federal Reserve’s decision to maintain the current federal funds target range, the Central Bank of the UAE has also opted to keep its benchmark interest rate steady at 3.65 percent. Because the UAE dirham is pegged to the U.S. dollar, local monetary policy typically mirrors moves made by the Fed. Consequently, gold prices in the Dubai market saw a decline on Thursday, with the 24K variant dropping to Dh487.50 per gram from the previous day's closing price of Dh491.50. Other gold variants, including 22K, 21K, 18K, and 14K, also saw similar downward adjustments.

Market analysts suggest that the decision to pause rate hikes is consistent with recent economic trends, noting that inflation has shown signs of cooling and the labor market is not currently overheating. While the Fed maintained a cautious outlook, experts like Vijay Valecha of Century Financial noted that current data would have made a rate hike appear contradictory. However, some caution remains in the market, as policymakers continue to monitor inflation risks and potential volatility in energy prices, which could influence future interest rate decisions throughout the remainder of the year.