Dubai gold price now just Dh3.25 away from the Dh500 mark

Dubai: Gold prices in Dubai moved sharply higher on Tuesday, with 24K trading at about Dh496.75 per gram after spending much of last week near Dh475. The 22K category held around Dh460, recovering from Thursday’s Dh440 low. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The surge mirrors global bullion moves after gold posted its strongest daily gain since May. Sentiment improved as Washington moved closer to ending the longest US government shutdown in history, raising expectations that the Federal Reserve will have more room to cut rates in the coming months.

Spot gold held near $4,120 an ounce on Tuesday after climbing as much as 2.9% in the previous session. A bipartisan deal to reopen the US government, backed by President Donald Trump, is expected to pass the Senate and trigger the release of long-delayed economic data. Analysts expect the data to paint a weaker economic picture, reinforcing the case for further monetary easing.

Bullion has been on a strong upward trajectory this year, supported by central bank demand and rising private inflows. While the rally stalled last month, many traders maintain a constructive long-term view, citing persistent structural demand.

Vijay Valecha, Chief Investment Officer at Century Financial, said the delay in official data pushed investors toward private indicators.

“Due to the government shutdown, there was a blackout in official data releases. Investors turned to private reports for direction. The private data reflected softening in labour market conditions in October and weaker consumer sentiment. The University of Michigan’s index came in at 50.3 versus expectations of 53.2, reinforcing gold’s appeal as a safe-haven asset,” he said.

He added that the reopening bill now progressing through Congress will restore access to key economic readings. “The Senate’s initial approval to reopen the government paves the way for key economic data releases to resume once the House passes the bill. The data is crucial for assessing the nation's economic health. While the reopening could weigh on gold, the possibility of a December rate cut can continue to support prices.”

The People’s Bank of China maintained its steady accumulation of bullion, purchasing gold for the 12th consecutive month. Modest inflows into gold-backed ETFs late last week, combined with a softer US dollar, also helped to stabilise prices.