Dubai gold price climbs to Dh481.50 after rate cuts

Dubai: Gold prices in Dubai remained below the Dh500 mark for 24-karat on Thursday evening, despite a Dh5 per gram rise across purity categories. Retail prices for 24-karat stood at Dh481.50 per gram, up from Dh476.25 a day earlier. The widely traded 22-karat segment climbed to Dh446 from Dh441.

The move came as traders reacted to interest rate cuts in the US and UAE. Global bullion hovered near $4,000 an ounce, consolidating gains from Wednesday.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Gold held above $4,000 as markets assessed a brief thaw between Washington and Beijing. The US-China trade truce did not eliminate longer-term concerns about technological and geopolitical rivalry. Bullion rose 2.4% in the previous session, halting a four-day slide.

Talks between Presidents Donald Trump and Xi Jinping signalled a temporary easing of tensions. A one-year pause is seen as stabilising relations while giving each side time to reduce strategic dependence. The shift underscored China’s growing economic weight relative to Trump’s first term, renewing demand for safe-haven assets.

Gold remains on track for a second weekly loss, down more than 2% this week. Recent price pressure reflects reduced expectations for additional Federal Reserve cuts. Treasuries extended declines after Fed Chair Jerome Powell warned that investors should temper hopes for a December reduction, noting that policymakers are still assessing the path of inflation and the labour market.

ETF outflows added to the softer tone. Gold-backed exchange-traded funds saw a sixth straight day of withdrawals on Wednesday, the longest run since April, based on Bloomberg-compiled data.

Despite the cooling in momentum, gold prices have advanced more than 50% this year. Investors sought protection from market risk while central banks continued to build reserves. According to the World Gold Council, central banks purchased 28% more gold in the third quarter compared with the previous period, reversing earlier declines.

The combination of steady local retail buying, central-bank demand and shifting geopolitical dynamics continues to anchor sentiment in Dubai’s gold market, even as international traders reassess how far monetary policy easing will go in the year ahead.