Dubai shoppers wake up to higher gold prices after a quiet week

Dubai Gold prices in Dubai moved higher on Thursday morning after holding steady for three consecutive sessions, in line with a broad rally in precious metals following the US Federal Reserve’s latest interest rate cut.

In the emirate’s retail market, 24-karat gold was trading at Dh509.75 per gram, up from Dh506.25 on Wednesday. The 22-karat variety also advanced to Dh472.25 per gram from Dh468.75 a day earlier, according to data from major jewellers. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Modest swings through early December

Gold prices in Dubai have shown modest but steady fluctuations through the first half of December. The 24-karat rate began the month at Dh511.75 per gram, slipped below Dh506 in the first week, and has gradually rebounded to the Dh509 range in recent days. Similarly, 22-karat gold opened December at Dh473.75 per gram, drifted near Dh468 for several days, and edged higher again this week as international prices strengthened.

This month’s pattern reflects mild local demand recovery and the influence of shifting global interest rate expectations.

Fed cut sparks global bullion rally

Globally, bullion extended gains for a third straight day after the Federal Reserve delivered a widely expected interest rate cut at its final meeting of the year. The US central bank reduced its benchmark rate by 25 basis points to a range of 3.5%–3.75%, its third cut in as many meetings.

Gold prices in global markets advanced by as much as 0.5%, touching near $4,248 an ounce, while silver climbed to a record high. Treasury yields and the dollar weakened, lending further support to precious metals.

A softer Fed stance is typically seen as positive for gold, which benefits from lower interest rates since it does not offer yield. With policymakers signalling only limited further cuts in 2026, traders nevertheless see room for continued strength in metals as liquidity increases.

Record year for bullion and silver

Gold has surged more than 60% this year, while silver has more than doubled, marking their strongest annual performances since 1979. The rally has been underpinned by sustained central-bank purchases and investors shifting away from sovereign bonds and major currencies.

According to the World Gold Council, holdings in gold-backed exchange-traded funds have risen every month this year except May, highlighting renewed investor appetite for the metal as a store of value.

The Fed also announced plans to begin purchasing $40 billion in Treasury bills per month starting December 12 to bolster liquidity in the financial system. The move is expected to support demand for precious metals in the coming weeks as markets adjust to easier financial conditions.

- With inputs from Bloomberg.