Planning year-end gold shopping? Dubai prices stabilise after a volatile December

Dubai: Gold prices in Dubai were unchanged on Wednesday, holding firm after a volatile December that saw prices surge to record highs before easing toward month-end. As of 9:30 am, 24-karat gold was priced at Dh522 per gram, while the 22-karat variety stood at Dh483.25. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

While prices were flat on the day, December told a far more eventful story for bullion buyers. Gold opened the month near Dh511.75 per gram for 24-karat gold on December 1, with steady gains building through the first half as prices crossed Dh520 by mid-month. Momentum picked up sharply in the final week, pushing prices to an all-time high of Dh546.25 on December 27 and 28, before profit-taking set in. By the final days of the month, prices had retreated and stabilised around the Dh522 mark, leaving gold still sharply higher on a monthly basis despite the late pullback.

The same pattern played out in 22-karat gold, which began December near Dh473.75, climbed steadily through Dh480 and Dh490 levels, and peaked at Dh505.75 in the final week. Prices then eased back to Dh483.25 by December 31, reflecting cooling momentum rather than a reversal in sentiment.

Globally, gold steadied after an end-of-year dip, though it remains on track for its strongest annual performance since 1979. Spot gold traded around $4,335 an ounce on Wednesday, after edging higher following a sharp decline earlier in the week. Silver held above $75 an ounce after recent volatility.

The precious metals complex has swung sharply this month, hitting successive records before giving up part of those gains as investors locked in profits from what many described as an overheated rally. Despite the pullback, gold is still up more than 65% this year, supported by heavy central-bank buying, concerns over sovereign debt and the US Federal Reserve’s easing cycle.

Elsewhere in commodities, copper was heading for its biggest annual gain since 2009, driven by expectations that demand linked to electrification and energy transition will outpace supply. The metal has surged more than 40% on the London Metal Exchange this year, making it the top performer among major industrial metals.

Traders have rushed to ship copper to the US ahead of potential tariffs, tightening supply elsewhere. A weaker dollar, alongside strong rallies in gold and silver, has also boosted investor appetite.

The amount of gold required to buy a ton of copper has fallen to a record low, highlighting the scale of the metal’s outperformance.

- With inputs from Bloomberg.