Dubai gold prices soar past Dh500 overnight as global rally continues

Dubai: Gold prices in Dubai breached the Dh500 mark on Thursday morning after a steady three-week climb, with 24-carat trading at Dh508.25 per gram—up from Wednesday evening's Dh504.75.

The 22-carat category followed suit, rising to Dh470.50 from Dh467 overnight, marking a significant recovery from the Dh440 low recorded last Thursday.

The sharp gains extend a rally that has seen gold climb from last week's Dh475 average for 24K, driven by renewed strength in global bullion markets and expectations of policy easing by the US Federal Reserve.

Market analysts attribute the surge to gold's breakthrough of the key $2,155 resistance level globally, a target that has reinforced bullish momentum in the short term.

The precious metal is being supported by a favourable trend line and renewed positive signals on relative strength indicators.

However, analysts at Economies.com noted that gold experienced brief profit-taking after its recent strong gains, as some traders cashed in on the rally. Despite reaching overbought levels that could limit further upside movements, any current declines are seen as opportunities for the market to consolidate before attempting fresh gains.

Dubai retailers report that consumer buying has remained steady despite the higher price band, as investors continue to hedge against global uncertainty. The resilient demand suggests confidence in gold's role as a safe-haven asset during periods of economic volatility.

The local market's firm rebound mirrors global trends, with bullion investors positioning themselves ahead of potential shifts in US monetary policy. Federal Reserve policy decisions remain a key driver, as any moves towards easing could further support precious metal prices.

Industry observers are now watching whether gold can maintain its position above the Dh500 threshold, or if profit-taking will push prices lower in the coming sessions. The supportive technical indicators suggest the bullish wave may continue in the near term, though caution remains over sustainability at current elevated levels.

For now, the psychological Dh500 barrier has been decisively broken, marking a significant milestone for Dubai's gold market.