Dubai gold steadies near Dh492 while global traders rethink Fed outlook

Dubai: Dubai’s gold market opened the week in stable territory, with 24K trading around Dh492.25 per gram on Monday and 22K holding near Dh455.50. The steadiness comes at a time when global bullion has struggled to find direction, as traders reassess expectations for a US Federal Reserve rate cut next month.

Dubai rates have shown a clear pattern through November. The month began with softer levels, with 24K touching Dh475.25 on November 4. Prices then firmed steadily, reaching Dh504.75 on November 12 before cooling again. By the start of this week, the market had settled back near Dh492, providing a degree of predictability for shoppers heading into the year-end buying season. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The shift was mirrored across 22K, 21K and 18K categories, which climbed to their mid-month highs before easing into a narrower band. Retailers say the stabilisation has helped restore some confidence after the sharp swings that dominated early November.

Global sentiment turns cautious

Internationally, gold traded slightly below $4,100 an ounce on Monday following two sessions of losses. The drop was fuelled by fading optimism that the Fed will cut borrowing costs in December. Expectations had been high only weeks ago, but central bank officials have since shown little urgency to ease policy.

The prolonged US government shutdown has further clouded the outlook. With six weeks of missing data on jobs and inflation, policymakers have grown more reluctant to commit to a move next month.

Rally remains intact for the year

Despite the pullback, gold remains one of the strongest global assets in 2025. Bullion is still up roughly 55% this year and is on track for its best annual performance since 1979. Last month’s surge above $4,380 was driven by heavy central-bank buying and renewed investor demand as concerns grew over the fiscal positions of major economies.

For Dubai shoppers, the market’s return to a stable range this week offers clarity after a volatile fortnight. Retailers expect demand to pick up as the peak tourist season approaches, particularly if global sentiment steadies and local rates continue to hover near current levels.