Dubai gold flat while bullion loses steam before a crucial Fed decision

Dubai: Gold prices in Dubai remained unchanged on Tuesday morning, with 24-karat gold trading at Dh506.25 per gram and 22-karat at Dh468.75. The steady start reflects a cautious tone in global markets as traders await confirmation of an expected US rate cut later this week. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Over the first nine days of December, Dubai’s retail gold prices have seen minimal movement. The 24-karat rate has hovered between Dh503.75 and Dh511.75, while 22-karat prices ranged from Dh466.50 to Dh473.75. The sharpest daily adjustment came at the start of the month when 24K dropped from Dh511.75 to Dh503.75, tracking global bullion weakness. Since then, prices have stabilised, mirroring a broader pattern of consolidation in global gold markets.

On global exchanges, bullion traded near $4,193 an ounce early Tuesday after slipping slightly in the previous session. Traders are positioning ahead of a pivotal Federal Reserve meeting that may set the tone for monetary policy through 2026. US Treasury yields edged higher on Monday as investors prepared for a series of auctions and the Fed’s latest decision on Wednesday.

Swap traders currently expect a quarter-point interest rate cut, but fewer easing moves over the next year than previously projected. Kevin Hassett, considered a leading candidate to become the next Fed chair, said it would be “irresponsible” to lay out a plan for rates over the next six months. His remarks suggested caution at a time when higher rates remain a drag on non-yielding assets such as gold.

Gold has outperformed most major asset classes in 2025, gaining nearly 60% since January. The rally has been driven by heavy central-bank buying and continuous inflows into gold-backed ETFs. Prices touched a record high above $4,380 an ounce in late October before easing back. Despite recent consolidation, sentiment remains buoyed by expectations of further monetary easing in the US.

However, some analysts warn that the rally could be losing strength.