[Editor’s Note: Want to know the gold rate in Dubai? Click here]
Gold prices in Dubai dropped by Dh3.5 per gram on Tuesday morning after reaching a six-week high on Monday.
The Dubai Jewellery Group data showed that 24K gold prices in the Emirates were trading at Dh508.25 per gram, down from Dh511.75 per gram at the market close on Monday.
Among other variants of the precious metal, 22K, 21K, and 18K gold prices fell to Dh470.75, Dh451.25, and Dh386.75 per gram, respectively. The price of the newly-introduced 14K gold decreased by Dh2 to Dh301.75 per gram on Tuesday.
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The UAE is celebrating its 54th National Day today, also known as Eid Al Etihad. Globally, spot gold was trading at $4,225.35 per ounce, down 0.38 percent.
Rania Gule, senior market analyst for Mena at xs.com, stated that the gold price of $4,250 signals a strategic repositioning by investors in anticipation of a more flexible monetary phase in the coming weeks.
She noted that the broad weakness in the US dollar is providing a key support pillar for this rally, forming both a technical and fundamental driver that cannot be ignored in explaining gold’s stability above sensitive levels.
“Markets currently expect, with an 87 percent probability, that the Federal Reserve will cut interest rates by 25 basis points in the December meeting. These expectations are not extraordinary; rather, they reflect consistency between economic indicators and policy direction. Recent economic data points to clear deceleration, inflation is on a downward path, and political tensions within the US administration make it more difficult to maintain a strictly hawkish stance,” added Gule.
Therefore, the current weakness of the dollar is not temporary — it reflects a deeper shift in policy expectations,” she added.
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