Gold near all-time highs: Why prices in Dubai are unlikely to fall soon

Dubai: Gold prices steadied on Tuesday after five sessions of gains, with investors focusing on a series of US economic readings expected this week that may shed light on the Federal Reserve’s stance toward further interest-rate cuts.

Spot bullion traded near $4,305 an ounce in early Asian trade, holding close to an all-time high of $4,381 reached in late October. The stability comes after the Fed’s third rate cut of the year, which lifted the appeal of non-yielding assets.

Dubai prices mirror global trends

In Dubai, gold followed a similar pattern. The 24-karat variety traded at Dh518.25 per gram, unchanged from Monday, while 22-karat gold stayed at Dh480. The local market has mirrored gold’s global resilience in recent days, holding firm despite fluctuations in the dollar and bond yields.

Over the past two weeks, Dubai gold prices have shown steady appreciation. The 24-karat rate climbed from Dh503.75 per gram on December 2 to Dh518.25 by December 16, while 22-karat gold advanced from Dh466.50 to Dh480 over the same period. Both benchmarks have now stabilised at their highest range of the month, signalling stronger buying momentum from retail and investment segments.

Focus shifts to US economic data

US payrolls data, delayed by a six-week government shutdown, are due later today. Economists forecast a 50,000 increase in payrolls and an unemployment rate of 4.5%, pointing to a soft but stable labour market. Inflation figures expected later in the week and speeches from several Fed officials will add further direction to investor sentiment.

Historic rally continues in 2025

Gold has gained about 65% so far this year, while silver has more than doubled, marking the strongest annual performance for both metals since 1979. The surge has been driven by sustained central-bank purchases, concerns over global debt levels, and investors’ retreat from government bonds. According to the World Gold Council, holdings in gold-backed ETFs have risen every month this year except May.

- With inputs from agencies.