Dubai gold climbs again as rate cut bets shake global markets

Dubai: Dubai gold prices moved higher again on Wednesday morning, tracking gains in global bullion markets and reviving buying interest across jewellery counters.

At 9.10 am, 24K gold was priced at Dh608.25 per gram, up from Dh604.75 on Tuesday. The 22K variant climbed to Dh563.25 from Dh560 a day earlier, extending a steady rebound that has gathered pace this week. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

International prices firmed after weak US retail sales data strengthened expectations that the Federal Reserve may be forced to cut interest rates in the coming months. Spot gold rose 0.3% to $5,038.66 an ounce in early Singapore trade, after briefly climbing as much as 0.6% earlier in the session. Silver advanced 0.6% to $81.3066, while platinum and palladium also edged higher.

Consumer spending in the US unexpectedly stalled in December, adding pressure on policymakers already navigating slowing momentum in parts of the economy. Markets are now awaiting January’s closely watched jobs report, which could shape the next move on borrowing costs.

Gold, which does not pay interest, typically benefits when rates fall because the opportunity cost of holding the metal declines. President Donald Trump’s pick for Federal Reserve Chair, Kevin Warsh, has advocated further cuts. At the same time, Cleveland Fed President Beth Hammack said interest rates could remain on hold while officials assess incoming data, leaving markets sensitive to every economic release.

Bullion remains well below the record peak above $5,595 an ounce reached in late January, when geopolitical tensions and concerns about the Fed’s independence triggered heavy safe-haven flows. A rapid surge in speculative buying overheated the rally, sending prices plunging about 13% in two sessions.

Prices have since recovered roughly half of those losses and have been consolidating around the $5,000 level this week. Major banks remain constructive on the outlook. BNP Paribas is forecasting gold at $6,000 by year-end, while Deutsche Bank and Goldman Sachs have also maintained bullish projections, arguing that structural drivers including geopolitical risk and central bank demand remain supportive.

With global prices holding above $5,000 and policy uncertainty lingering, volatility is likely to remain a key feature in the weeks ahead.

- With inputs from Bloomberg.