Dubai: With all eyes on the US Federal reserve and its decision later today, gold prices have been testing the $4,000-an-ounce threshold. Overnight, gold retreated by over 0.5 per cent shaving off the 1.1 per cent it added in the previous session.

But it is the blazing oil prices that have weighed on sentiment with Brent crude climbing to $115 per barrel. The Wall Street Journal has also reported that Washington has warned several Gulf states to prepare for a renewed military campaign against Iran.

In the UAE, gold prices continue to soften, brightening prospects for shoppers. 24-karat gold is being priced at Dh486.50 versus the Dh489 it demanded a day before. 22-karat has come down to Dh450.50, 18-karat is commanding Dh370.25 per gram, while 14-karat is down to Dh288.75 on Wednesday.

Hectic buying may raise prices

But even though bullion is testing $4000 levels, Chinese and Indian households have been lending support. Physical buyers and bargain hunters have kept the decline from deepening.…