Dubai gold price edges closer to Dh500 per gram

Dubai: Gold prices in Dubai extended their rally on Wednesday, with 24K trading around Dh495.50 per gram, up sharply from last week’s Dh475 average. The 22K category held near Dh458.75, continuing its recovery from a Dh440 low on Thursday. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

This marks a firm rebound for the local market, supported by renewed strength in global bullion and expectations of policy easing by the US Federal Reserve. Retailers said consumer buying has remained steady despite the higher price band, as investors hedge against global uncertainty.

International market snapshot

In international trading, gold steadied after a three-day rise, supported by speculation over potential rate cuts in the US  and the imminent restart of the federal government. Bullion briefly rose above $4,145 an ounce in early trade before paring gains.

Data from ADP Research showed that US companies shed an average of 11,250 jobs per week in the four weeks ended October 25, a sign of persistent softness in the labor market. Analysts say that weakness could encourage further monetary easing, which typically benefits gold since it offers no yield.

Investors are also awaiting a flurry of official data once the government reopens after its record shutdown. The resumption of data releases is expected to bring greater clarity on the economy and influence the Fed’s December rate decision.

Vijay Valecha, Chief Investment Officer at Century Financial, said the broader outlook for gold remains positive despite short-term fluctuations.

“The outlook for gold remains constructive. The reopening of the government will allow the Fed to regain access to key economic data, which could shape its December policy decision,” he said.

He pointed out that CME FedWatch data indicates a 63.9% probability of a 25-basis-point rate cut in December, while a proposal by Trump’s Fed representative Miran for a deeper 50-basis-point cut could add further tailwinds for the non-yielding metal.

“Any delay in data releases or ambiguity around the timing of rate cuts could heighten short-term volatility,” Valecha added.

On the technical front, Valecha said gold continues to trade above its 9-day and 21-day simple moving averages, confirming near-term strength. Resistance sits at $4,141 an ounce, a level tested in October. A clear breakout could pave the way toward $4,171 on the 4-hour chart.

“The relative strength index has risen to 58 from 54. Since gold is not yet in overbought territory, it still has room to run,” he noted.

Investor positioning and global sentiment

Gold has retreated modestly from last month’s record above $4,380, as some investors locked in profits after the sharp rally. However, the metal remains up more than 55% this year, on track for its best annual performance since 1979, supported by sustained central-bank purchases and geopolitical hedging.

With Dubai’s 24K rate now within a dirham of the Dh500 mark, traders say the next key test will depend on global cues from the Fed and US data releases in the coming weeks. For now, the metal remains firmly on investors’ radar, and on track for one of its strongest years in decades.

- With inputs from agencies.