Dubai: Gold rates remain high, 22k still at Dh406 per gram

Dubai: Gold prices in Dubai stayed high even by Tuesday evening, with 22-karat gold staying above Dh400 per gram for the fourth straight day. It settled at Dh406.75 per gram, after hitting a high of Dh408 a day earlier. The price of 24-karat gold too steadied at Dh439.25 per gram.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.) Meanwhile, the Indian gold rate for 24-carat gold is approximately ₹11,051 per gram, and the rate for 22-carat gold is about ₹10,130 per gram on Tuesday. 

Gold stayed near record highs as traders awaited US inflation data and still digested U.S. data that bolstered expectations for Federal Reserve interest-rate cuts. Prices stayed high at $3,650 an ounce, after reaching as high as $3,674 on Tuesday.

The Fed is set to announce its next monetary policy decision next week, following U.S. producer and consumer inflation data due Wednesday and Thursday. Traders widely expect the central bank to cut rates twice this year, possibly starting with a modest reduction next week, supporting higher gold prices globally.

Gold has surged nearly 40% this year, driven by central bank purchases, anticipation of rate cuts, and geopolitical tensions. Political uncertainty in the U.S. and global trade concerns have also strengthened gold’s appeal as a safe-haven asset.

Analysts say gold could rise further if pressure mounts on the Fed or if investors shift funds from U.S. bonds into gold. Some forecasts even suggest prices could reach $5,000 an ounce in the long term.

For UAE buyers, this trend translates to higher shop prices now, with the potential for more increases ahead.