Dubai gold price slips further, giving shoppers slight relief after record rush

Dubai: Retail gold prices in Dubai softened on Tuesday, tracking a weaker global trend as investors awaited clearer signals on US monetary policy and digested fresh policy developments in China.

In the UAE, 24-karat gold stood at Dh475.25 a gram, down Dh8 from Monday. Similarly, the popular 22-karat category slipped to Dh440 from Dh448 at the start of the week. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Globally, bullion retreated 1.75 per cent to $3,930 an ounce after Federal Reserve officials stopped short of supporting another rate cut next month. The dollar held near a multi-month high, reducing the appeal of non-yielding assets such as gold.

Fed Governor Lisa Cook said she saw the risk of further labour-market weakness as greater than the risk that inflation will pick up, but refrained from committing to another cut in December. The remarks echoed comments from Mary Daly and Austan Goolsbee, both of whom avoided signalling a third cut this year.

The US central bank has already delivered two reductions, and policymakers will meet again next month for their final gathering of the year. Market participants are weighing whether the recent rally can resume after the metal set a record midway through last month before giving up ground on concerns the move had been too swift.

Fed Chair Jerome Powell late last month also cautioned investors against assuming the central bank would follow up with another cut in December in remarks that seemed aimed at reining in expectations in markets.

Gold ended little changed on Monday after China announced that some retailers would no longer be able to fully offset a value-added tax on inputs when selling certain products. The decision has introduced uncertainty around demand at a time when price volatility is already elevated. Traders are watching for clarity on how the regulation will be applied in practice as the changes could influence retail appetite in one of the world’s largest gold markets.

For UAE buyers, the pullback offers modest relief, although price levels remain near historic territory. Retail interest has held steady in recent weeks, supported by festive demand and consumer hedging against volatility.

Market attention now shifts to upcoming US data and the Fed meeting, which will help determine whether bullion can re-establish upward momentum or remain pressured by a firm dollar and cautious policy signals.