Bad news for buyers: Gold prices are inching up again, likely to go higher

Dubai: Gold prices are inching up again as global demand for safe-haven assets softens and expectations shrink for aggressive interest rate cuts this year. With investors adjusting to this shift, analysts are mostly sticking to a bullish outlook, pointing to strong underlying support that could push prices higher in the coming weeks.

While that may be disappointing for UAE-based gold buyers hoping for a steep drop, current rates might still offer a cost-effective entry point—especially if, as trends suggest, gold is preparing for another rise.

Gold, often seen as a reliable store of value during times of global uncertainty, had surged to a record $3,500.05 per ounce on April 22. Although prices dipped after that high, the metal was steadily climbing again, trading around $3,280 an ounce on Tuesday.

As of today, retail gold prices in the UAE were Dh393 per gram for 24-karat gold, slightly up from Dh389.25 yesterday. Rates for 22-karat gold stood at Dh363.75 (up from Dh360.25 on Monday), while 21-karat gold was Dh348.75, and 18-karat gold traded at Dh299.00 per gram. (Check live gold rates here.)

Separately, two senior officials from the US Federal Reserve—New York Fed President John Williams and Vice Chair Philip Jefferson—indicated that policymakers may hold off on cutting interest rates until at least September, given the uncertain economic outlook. That sentiment adds pressure on gold, which doesn't earn interest and typically reacts negatively to higher rates.

Both officials reinforced a cautious "wait-and-see" stance, with Jefferson noting the importance of preventing temporary price increases from turning into sustained inflation. Market watchers now expect less than a 10% chance of a rate cut at the Fed’s June 17–18 meeting in Washington.

Gold prices had rallied strongly earlier this year when former US President Donald Trump’s trade policies triggered market volatility. But gains have partly reversed in recent weeks, as some of those tariff threats—especially on China—have been paused or scaled back.

Still, gold is up more than 20% this year, driven by strong inflows into gold-backed ETFs and surging speculative demand in China.

In fact, China imported the highest volume of gold in nearly a year last month, despite near-record prices. The country's central bank eased import restrictions in response to booming demand, with gold shipments reaching 127.5 metric tons—a 73% jump from the previous month.