Planning to buy gold? Dubai prices jump Dh3.75 to December high

Dubai: Gold prices in Dubai climbed Dh3.75 on Monday compared to Sunday’s levels, reflecting strong global momentum amid mixed signals from the US Federal Reserve. The 24-karat variety traded at Dh521.75 per gram, up from Dh518 over the weekend. The 22-karat gold stood at Dh483, compared to Dh479.75 on Sunday. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Gold prices have steadily strengthened through the first half of December, with 24-karat rates advancing from Dh511.75 on December 1 to Dh521.75 on December 15. The 22-karat category followed a similar pattern, rising from Dh473.75 to Dh483 during the same period. After a brief dip early in the month when 24K slipped below Dh506, prices regained traction from December 10 onward, showing consistent gains over five straight sessions. The latest increase marks the highest level so far this month.

Bullion steadied in global trade after four consecutive days of gains. On Monday, spot gold hovered near $4,310 an ounce, building on a 2% weekly rise. The metal’s upward drive came despite divided views among US Federal Reserve policymakers about the pace of monetary easing next year.

Although the Fed cut interest rates for a third consecutive time last week, three officials dissented, expressing concern over the timing of the move. Chicago Fed President Austan Goolsbee said it would have been “more prudent” to wait for more data, citing delays in key economic releases caused by the recent government shutdown. Kansas City’s Jeff Schmid added that inflation “remains too high.”

Precious metals typically benefit from lower interest rates, as they offer no yield. The recent policy split has underscored the uncertainty facing traders heading into 2026.

Globally, gold has surged more than 60% in 2025 and is on course for its strongest annual performance since 1979. Silver prices have more than doubled, lifted by speculative bets and supply constraints following a historic short squeeze in October.

According to the World Gold Council, central banks have been major buyers throughout the year, while investors continue to shift funds from bonds and currencies into bullion-backed exchange-traded funds. Silver touched a record high of $64.6573 an ounce on Friday, highlighting the strength of the broader precious metals rally.

- With inputs from Bloomberg.