Dubai gold stay pricey on renewed fears of US shutdown, looming Fed rate cut

Dubai: Gold prices in the emirate climbed to record levels on Monday as global bullion surged past $3,950 per ounce. Locally, 22-karat gold stood at Dh440 per gram while 24-karat traded at Dh475.25.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.) Meanwhile, the Indian gold rate for 24-karat gold was back up at ₹12,076 per gram, and the rate for 22-karat gold rose to ₹11,070 per gram by Monday evening. 

On international markets, gold surged to a new peak of $3,955 an ounce before retreating slightly. The metal rose amid renewed fears over a US government shutdown and growing uncertainty over economic data releases.

The impasse in Washington has delayed Friday’s payroll report, leaving markets to lean on private data and intensifying volatility. With less clarity around the health of the US economy, central banks face difficulty in setting policy paths. In that vacuum, rate traders are increasingly pricing in a quarter-point cut by the Fed at month's end, a move that would favour non-yielding assets such as gold.

Gold’s rally this year has been dramatic. The metal has climbed nearly 50%, powered by geopolitical and economic uncertainty, expectations of easing by the Fed, and central bank purchases aimed at reducing exposure to US dollar assets.

Looking ahead, momentum looks intact. Banks like Goldman Sachs and HSBC have flagged the potential for gold to breach $4,000 an ounce in the near term, citing persistent demand from official sectors and ongoing policy uncertainty.

In Dubai, jewellery traders and retail buyers remain cautious even as local prices remain sticky at record levels. Many expect further upside if external pressures intensify, particularly if the US fiscal standoff lingers and rate cuts materialise.