UAE gold prices enjoy steady climb: Is this weekend a good time to buy?

Dubai: Prices of 24-karat gold climbed to Dh441 on Friday morning, after a minor slump mid-week. Prices had dropped to Dh439.00 mid-week per gram. Meanwhile, prices of 22-karat gold also shot up to Dh408.25 from the Dh406.50 prices late yesterday.

The rates dipped on Thursday despite the US Federal Reserve’s quarter-point interest rate cut, which initially sent global bullion to fresh record highs.

According to a Bloomberg report, gold declined as traders’ caution over future Federal Reserve rate cuts, along with a stronger dollar, tempered the precious metal’s recent surge. International gold rates stood at $3,650.51 on Friday morning.

Bullion was trading about $60 short of Wednesday’s all-time high — a record triggered by the US central bank’s announcement of a 25 basis-point rate cut.

Price then slid after Fed Chair Jerome Powell made comments on the monetary policy path that were less dovish than expected, saying officials were in a “meeting-by-meeting situation” regarding any further easing. Lower rates typically benefit gold, as it doesn’t pay yields. 

(Check the latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait. Meanwhile, the Indian gold rate for 24-carat gold was at ₹11,116 per gram, and the rate for 22-carat gold is about ₹10,190 per gram.) 

Meanwhile, the Indian gold rate for 24-carat gold has also risen to ₹11,133 per gram, and the rate for 22-carat gold is about ₹10,205 per gram on Friday. 

In corporate news, Zijin Gold International Co., a unit of China’s top miner, is seeking to raise $3.2 billion for an initial public offering in Hong Kong that’s poised to be the world’s biggest deal of its kind since May.

Trading is set to begin on September 29. Elevated gold prices have provided a tailwind for miners to raise funds for further expansion and to pay off debt. 

The 'new normal' for UAE buyers

Despite record-high prices, UAE jewellers report that consumers are not fundamentally shifting away from gold purchases. Instead, they quickly adapt to new price levels as the "new normal," particularly for culturally significant occasions like weddings and festivals.