Gold price slips to Dh475.25 in Dubai after a near-2% global drop

Dubai: Gold prices in Dubai eased on Wednesday, tracking a sharp global retreat as a stronger US dollar and cautious signals from Federal Reserve officials prompted investors to trim positions after the metal’s recent record-breaking run.

In the UAE, 24-karat gold slipped to Dh475.25 a gram, down Dh8 from Monday. The widely traded 22-karat category declined to Dh440 from Dh448 at the start of the week. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Spot bullion steadied near 3,940 dollars an ounce after a drop of almost 2% in the previous session. The dollar extended its rally for a fifth day, while global equity markets weakened again following the steepest sell-off in almost a month on concerns over valuations. Most major commodities also moved lower.

The setback followed remarks from three Federal Reserve policymakers who declined to back another rate cut in December, citing the need to balance sticky inflation with signs of a softer labour market. Traders are watching for further clarity from upcoming speeches by St. Louis Fed President Alberto Musalem and Cleveland Fed chief Beth Hammack.

Gold remains roughly 50% higher this year. The metal hit a record last month before easing, with the pullback coinciding with redemptions from gold-backed exchange-traded funds after indications that the rally had accelerated too quickly.

Investors are assessing whether the correction has run its course or if further consolidation lies ahead, with currency strength and risk sentiment in focus as markets gauge demand for safe-haven assets.