Dubai: Gold hovered around $4,000 an ounce as traders waited for this week’s Federal Reserve decision, which is widely expected to leave interest rates unchanged. The metal barely moved after losing 0.5 per cent in the last session.

In the UAE, shoppers are flocking the gold souks as prices in the run-up to the festive weeks align well with the lower rates. 24-karat gold is priced at Dh483.25 versus Dh485.25 it traded the previous day. 22-karat gold is trading at Dh447.50 , 18-karat is being priced at Dh367.75 while 14-karat is down to Dh287.

Gold continues to stay under pressure. Stubbornly high energy prices have kept inflation worries alive, and the metal also got dragged into the wider unwinding of the AI trade. Investors are selling gold to cover losses that occur when tech stocks tumble. On Friday, gold fell to its lowest level since mid-July.

Expectations for the Fed’s rate path have moved over the past month, which clouds the near-term outlook for gold.…