Gold near all-time highs: Why prices in Dubai are unlikely to fall soon

Dubai gold prices hold steady as global markets await fresh US economic indicators

Last updated:
Nivetha Dayanand, Assistant Business Editor
File photo os a woman looking at gold jewellery at a jewellery shop in Istanbul.
File photo os a woman looking at gold jewellery at a jewellery shop in Istanbul.
REUTERS

Dubai: Gold prices steadied on Tuesday after five sessions of gains, with investors focusing on a series of US economic readings expected this week that may shed light on the Federal Reserve’s stance toward further interest-rate cuts.

Spot bullion traded near $4,305 an ounce in early Asian trade, holding close to an all-time high of $4,381 reached in late October. The stability comes after the Fed’s third rate cut of the year, which lifted the appeal of non-yielding assets.

Dubai prices mirror global trends

In Dubai, gold followed a similar pattern. The 24-karat variety traded at Dh518.25 per gram, unchanged from Monday, while 22-karat gold stayed at Dh480. The local market has mirrored gold’s global resilience in recent days, holding firm despite fluctuations in the dollar and bond yields.

Over the past two weeks, Dubai gold prices have shown steady appreciation. The 24-karat rate climbed from Dh503.75 per gram on December 2 to Dh518.25 by December 16, while 22-karat gold advanced from Dh466.50 to Dh480 over the same period. Both benchmarks have now stabilised at their highest range of the month, signalling stronger buying momentum from retail and investment segments.

Focus shifts to US economic data

US payrolls data, delayed by a six-week government shutdown, are due later today. Economists forecast a 50,000 increase in payrolls and an unemployment rate of 4.5%, pointing to a soft but stable labour market. Inflation figures expected later in the week and speeches from several Fed officials will add further direction to investor sentiment.

Historic rally continues in 2025

Gold has gained about 65% so far this year, while silver has more than doubled, marking the strongest annual performance for both metals since 1979. The surge has been driven by sustained central-bank purchases, concerns over global debt levels, and investors’ retreat from government bonds. According to the World Gold Council, holdings in gold-backed ETFs have risen every month this year except May.

- With inputs from agencies.

Nivetha Dayanand
Nivetha DayanandAssistant Business Editor
Nivetha Dayanand is Assistant Business Editor at Gulf News, covering aviation, financial markets and commodities. A business and financial journalist with a strong interest in multimedia storytelling, she regularly takes complex financial and economic subjects beyond the written word, producing explainer videos that make them easier for a wider audience to understand. Nivetha has interviewed senior policymakers, business leaders and global financial figures both on and off camera. Her past guests include UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, Khaled bin Alwaleed Al Saud, a member of the House of Saud and the founder and CEO of KBW Ventures, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund and Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu. She has also hosted and moderated panels, conferences and awards shows, bringing her newsroom experience to live conversations on business, finance and the economy. An Erasmus Mundus journalism alum, Nivetha is drawn to stories that affect people directly and to reporting that gives a platform to voices that might otherwise go unheard. She was among the first journalists to speak to Petrofac employees in the UAE about unpaid salaries, broke the news of the planned demolition of Dubai’s well-known “Toyota Building”, and helped set the record straight on widely circulated claims that a giant replica of the Moon was coming to Dubai. More recently, her exclusive interview with EDGE Group CEO Hamad Al Marar revealed how the UAE-based defence group deployed its systems along the country’s shore border and established a geofence around the UAE within 48 hours of the February 28 escalation. Prior to joining Gulf News, Nivetha worked at ITP Media, where she helped launch Finance Middle East, a new publication covering the region’s financial sector. Her role spanned reporting and editing, video production, interviews and events. Across print, digital, and video, she focuses on finding the people behind business stories and explaining why those stories matter to the audience reading or watching them.
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