Gold scales new heights again, Dubai rate for 22k now costs over Dh400

Dubai: Gold prices in Dubai hit a fresh high on Monday, pushing the 22K rate above Dh400 per gram for a second day, as global investors reacted to weaker-than-expected US employment data.

Bullion in international markets rose around 0.7%, just above the previous record set last Friday, when prices jumped as much as 1.5%. In Dubai, 24K gold was up Dh3 to Dh435.25. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.)

The US payroll report showed slower hiring and unemployment reaching its highest level since 2021, fueling speculation that the Federal Reserve may cut interest rates in the coming months.

Lower borrowing costs tend to make non-yielding assets like gold more attractive. Safe-haven demand has also grown amid uncertainty over the US central bank’s policy direction. Market watchers in Dubai note that expectations of interest rate reductions are influencing both physical gold buying and investment flows.

Closely monitoring

Investors are now closely monitoring key US data this week, including revised payroll numbers and inflation readings for producers and consumers. These developments could influence whether gold maintains its upward trajectory.

Over the past three years, both gold and silver have more than doubled in value, driven by geopolitical tensions, economic volatility, and global trade uncertainties.

In addition, debates in Washington over the independence of the Federal Reserve have heightened market sensitivity, with some analysts suggesting that any perceived threat to the central bank could push gold toward $5,000 an ounce.

For UAE shoppers, this means gold jewellery and bullion are becoming more expensive, underscoring the importance of checking daily rates and negotiating making charges in souks and retail outlets to get the best value.