Dubai gold prices rise but stay below Dh600 level
Rates firm after recent swings while buyers watch Fed signals
Dubai: Gold prices in Dubai moved higher on Wednesday morning, though they remained below the closely watched Dh600 mark that continues to shape buying decisions across the local market. At 9:50 am, 24K gold stood at Dh594.50 a gram compared with Dh590.75 on Tuesday, while 22K rose to Dh550.50 from Dh547. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)
The modest gains come after several weeks of sharp swings that have kept shoppers cautious, and jewellers focused on near-term price trends rather than longer-term direction.
Dh600 remains key psychological barrier
Recent price movements show that the Dh600 level has repeatedly acted as a resistance point through February. Prices briefly moved above this threshold multiple times during the second week of the month, touching Dh610.50 on February 9 and again on February 11, before easing back.
Mid-month trading highlighted continued volatility, with 24K reaching Dh607.50 on February 14 and 15 before slipping to Dh596.75 on February 12 and Dh602 on February 16. Current levels suggest the market has entered a consolidation phase following the earlier surge.
The broader trend shows a sharp rise toward the end of January, when 24K climbed to Dh639.25 on January 28 and 22K reached Dh591.75. Prices then corrected quickly, falling to Dh564.25 for 24K and Dh522.50 for 22K by February 2 before recovering gradually.
Global bullion drives local direction
International prices continue to play the dominant role in shaping Dubai retail rates. Gold climbed back above $4,900 an ounce on Wednesday after a dip, as buyers returned following a two-day decline linked to a stronger dollar.
Bullion rose as much as 0.9% in thin trading, with many Asian markets closed for the Lunar New Year. The metal had dropped more than 3% over the previous sessions while the US currency strengthened.
A powerful rally in late January pushed gold to a record above $5,595 an ounce before heavy speculative buying triggered a sharp correction that briefly pulled prices close to $4,400. Trading has remained volatile since then, with the metal recovering nearly half of those losses.
Focus shifts to US interest rate signals
Market attention is now centred on signals from the Federal Reserve that could determine the next major price direction. Lower borrowing costs typically support non yielding assets such as gold.
Federal Reserve Governor Michael Barr said rates should remain steady “for some time,” until officials see clearer evidence that inflation is moving toward the central bank’s 2% target. Chicago Fed President Austan Goolsbee said there was potential for more rate cuts this year if inflation continues to ease.
Analysts say these policy signals, combined with geopolitical risks and continued investor demand, will likely keep gold prices volatile in the near term while maintaining an overall upward bias.
- With inputs from Bloomberg.
