Dubai 24k gold surges above Dh510 amid National Day break

Dubai: Dubai's 22-carat gold price has surged above Dh473 per gram on December 1, up from Dh470.75 yesterday, as markets react to festive demand ahead of UAE National Day.

The 24-carat benchmark climbed to Dh511.50, reflecting a sharp uptick during the morning session. Traders note heightened retail interest amid the four-day holiday break from November 29 to to December 2. Yesterday's close stood at Dh508.50 for 24K, confirming the overnight rise.

International factors fuel the local upswing, with traders betting on US Federal Reserve rate cuts weakening the dollar. Gold thrives in low-rate environments, as it yields no interest, drawing investors globally. Dubai prices mirror this, climbing over Dh3 in recent days on such expectations. Fed policy shifts create a portfolio substitution effect, making gold affordable in local currencies, say analysts.​

Ongoing global tensions, from Middle East unrest to broader uncertainties, position gold as a haven asset. Central banks, especially in emerging markets, continue stockpiling, sustaining upward pressure into late 2025. Prices have risen over 55 per cent this year on these dynamics.

The local firmness in Dubai mirrors a powerful global move in bullion. Internationally, gold is trading around $4,190 an ounce, up nearly 5% on the week and on track for a fourth straight monthly gain as markets price in another interest‑rate cut in the US. With swap traders assigning better than an 80% chance to a quarter‑point reduction in December, investors are responding to a weaker yield environment that makes non‑interest‑bearing assets such as gold relatively more attractive.

Bullion has already set a record above $4,380 an ounce this year and is on course for its strongest annual performance since 1979, driven by heavy central‑bank buying and sustained inflows into gold‑backed exchange‑traded funds. Silver has moved in tandem, rising to within a dollar of its own record on the back of tight physical supply and the same rate‑cut narrative.

For Dubai’s physical market, the price action translates into higher entry costs but also reinforces gold’s role as a store of value at a time of monetary uncertainty. Retail buyers who moved during the brief mid‑month softness, when 24k dipped back toward Dh485–Dh490, are now comfortably in the money, while late‑month buyers face a market that is still supported by global macro tailwinds rather than purely local sentiment.

If global prices remain anchored above $4,000 an ounce and the Federal Reserve delivers another cut, the bias for Dubai retail rates in the near term remains to the upside, even if short‑term consolidation around the Dh500 mark is likely.