Dubai: Gold prices up Dh37 in 4 weeks; All eyes on US, UAE rate cut this week
UAE gold up sharply in a month; Fed’s next move could decide if rally continues
Dubai: Gold in Dubai has climbed Dh37.75 per gram over the past four weeks, with 24-karat now priced at Dh438.75. The steady rise has jewellers busy, investors alert, and shoppers weighing whether to buy now or wait.
This week could prove decisive. Globally, gold has extended its winning streak to a fourth week, trading near $3,650 an ounce after hitting record highs.
(Check the latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait. Meanwhile, the Indian gold rate for 24-carat gold was at ₹11,116 per gram, and the rate for 22-carat gold is about ₹10,190 per gram.)
The big question for UAE buyers: will the US Federal Reserve’s meeting this week push prices even higher, or deliver a pause in the rally?
Why US Fed affects UAE gold
Gold prices worldwide are being shaped by what happens in Washington:
Rate cuts expected: Investors are betting the US Fed will lower interest rates this week. Gold usually gains when borrowing costs fall.
Weak US economic data: US jobless claims hit a four-year high, making a rate cut more likely.
US Inflation signals: Inflation remains below 3%, but expectations are creeping up — another reason traders are flocking to gold.
For Dubai’s shoppers, the outcome will ripple quickly into daily gold prices because the UAE dirham is pegged to the US dollar. That means whenever global bullion reacts to movements in the dollar — whether from US rate cuts, inflation data, or geopolitical shifts — those changes pass through almost instantly into Dubai’s gold market.
Impact on shoppers, jewellers
A clear rate cut could lift global bullion further, pushing Dubai’s 24k above the Dh440 mark and making jewellery more expensive.
A cautious central bank move could trigger a brief dip, giving shoppers a short buying window.
Jewellers say many families are watching closely ahead of wedding season, hoping for stability before committing to big-ticket buys.
Investors eye bigger picture
For investors in the UAE, gold remains a star performer in 2025 — already up nearly 40% this year. Global banks like UBS now see gold climbing to $3,800 an ounce by year-end, driven by central bank purchases, dollar weakness, and geopolitical uncertainty.
In that context, even small pullbacks in Dubai prices may be seen as buying opportunities rather than signs of weakness.
Silver too has joined the rally! Silver surged past $42 an ounce, its highest level since 2011. In Dubai, this has sparked demand for silver jewellery and bullion, especially among price-conscious buyers looking for alternatives to gold.
Week ahead: Key takeaways
Shoppers: If you’re planning to buy jewellery, early-week purchases may avoid price spikes after Fed announcements mid-week.
Investors: Any short-term dip could be an entry point given the strong longer-term outlook.
Jewellers: Expect more cautious customers until clarity comes from the Fed.
Dubai’s gold story this week is about more than daily price tags. It’s about how a policy decision thousands of miles away can shape wedding budgets, investment portfolios, and the mood in the souks.
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