Dubai gold rate drops Dh4 from record highs, tracking global ease in prices

Dubai: Gold is showing signs of easing from its record-breaking run recorded over the past few days, dropping from its all-time high price level of nearly $3,580 per ounce, with 22-karat dipping Dh4 from Dh397 per gram.

Analysts attributed the gold prices easing seen on Thursday to profit-taking after bullion scaled an all-time peak on expectations for a US interest rate cut. Global spot price of gold eased from a record high of $3,578.50 on Wednesday.

Gold’s surge this week made it the year’s standout commodity, jumping over 30% since January. Sellers saw big profits. Buyers, on the other hand, faced disappointment. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait).

"We've seen a bit of profit-taking, but gold is still in a bull market at this point in time. Rate-cut expectations and worries over the Federal Reserve's independence are going to add to safe-haven demand," GoldSilver Central MD Brian Lan told Reuters. "We won't be surprised even if gold prices go up to $3,800 or even higher in the near-term."

Several Fed officials continue to signal that rate cuts are on the way. Fed Governor Christopher Waller said the Fed should cut rates at its next meeting on September 17.

Markets now see a 97% chance of a small rate cut, up from 92% earlier, according to CME Group. Lower rates usually boost demand for gold, since it does not pay interest.