UAE interest rate cut: Dubai gold prices set to slip as global rates decline

Dubai: Gold prices in Dubai dipped by Dh1 by Thursday evening, with 22-karat gold at Dh406.50 per gram and 24-karat gold at Dh439 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 has also risen to ₹11,116 per gram, and the rate for 22-carat gold is about ₹10,190 per gram on Thursday. 

However, Dubai gold costs are set to ease after global rates dropped 1 per cent after hitting a record high, as traders reacted to the US Federal Reserve’s cautious outlook on interest rate cuts.

On Wednesday, gold reached $3,707.57 per ounce after the Fed lowered its key interest rate by 0.25% and signaled the possibility of two more cuts this year. Lower interest rates usually make gold more attractive because it doesn’t earn interest like bank deposits.

However, gold fell about $70 from that peak and closed 1.3% lower as investors realized the Fed may not cut rates as quickly as some had hoped. Fed Chair Jerome Powell said the central bank is taking a “meeting-by-meeting” approach and is concerned about inflation from tariffs.

The stronger US dollar has also put pressure on gold, making it more expensive for buyers using other currencies.

Even with the recent drop, gold is still up nearly 40% this year. It has outpaced major stock markets and even exceeded records from 1980. Trade tensions, geopolitical uncertainty, central bank buying, and investment inflows into gold-backed funds have all supported the rally.