Dubai gold price stays below Dh500 amid weaker haven demand and rate cut bets

Dubai: Dubai gold prices stayed under the Dh500 level on Tuesday, extending the metal’s recent weakness. As of 7 a.m., 24-karat gold traded at Dh481.25 per gram, while 22-karat stood at Dh445.50 per gram.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The decline reflects a broader pullback in global bullion markets after a sharp sell-off on Monday, when gold dropped below $4,000 an ounce. Prices clawed back some ground in early Tuesday trade, rising up to 0.9% after tumbling 3.2% in the previous session. The recovery remained modest as investors digested signs of progress in US-China trade negotiations, which reduced the immediate appeal of safe-haven assets.

Negotiators from Washington and Beijing said they had reached initial agreements covering tariffs and export controls. The development lifted risk sentiment, pushing US Treasury yields higher and weighing on demand for gold, which offers no interest return.

Investor attention now shifts to the Federal Reserve, which is expected to cut rates by 25 basis points at the conclusion of its two-day policy meeting on Wednesday. The move would mark the second rate reduction in succession as the central bank seeks to manage slowing growth and inflation pressures.

Markets are also tracking developments around the selection of the next Fed chair. Treasury Secretary Scott Bessent confirmed that five candidates are being considered to succeed Jerome Powell when his term ends in May next year. The shortlist includes current Fed board members Christopher Waller and Michelle Bowman, former Governor Kevin Warsh, White House economic adviser Kevin Hassett, and BlackRock executive Rick Rieder.

With gold prices now consolidating after months of gains, analysts say sentiment could remain fragile until there is more clarity on US policy and global trade direction. For now, investors appear content to stay cautious and watch whether the metal can hold above current support levels.