Gold rates surge Dh10: Will 24K prices soon return back to Dh500 levels?

Dubai: Gold prices jumped sharply at the start of the week, tracking global bullion gains as investors reacted to political and economic developments in the US.

In Dubai, 24K gold prices rose to around Dh491.75 per gram, after hovering near Dh475 levels last week. The popular 22K variant held at Dh455.25, recovering slightly from Thursday’s Dh440 low.

Retailers said the market could soon retest the Dh500-per-gram mark if global momentum continues. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Spot gold surged as much as 2.1% to around $4,080 an ounce, after US lawmakers moved closer to ending the country’s longest-ever government shutdown. The move has lifted uncertainty around the Federal Reserve’s interest rate outlook, boosting demand for safe-haven assets.

“Ending the US shutdown would give the Fed access to critical data on inflation and jobs, and could revive expectations for a December rate cut,” said Ole Hansen, Head of Commodities Strategy at Saxo Bank. “But rising US yields driven by fiscal concerns, not strong growth, have historically supported gold.”

Gold prices had slipped nearly 6% since hitting a record above $4,380 an ounce in mid-October, but remain up more than 50% this year, fueled by central bank buying, geopolitical risks, and a weakening growth outlook.

Analysts said Dubai’s local gold rates will closely track these global moves, with volatility expected in the weeks ahead. “If bullion sustains momentum above $4,000, Dubai’s 24K price crossing Dh500 looks likely,” said a bullion trader at Deira Gold Souq.