Gold prices in Dubai are gradually decreasing, with 22K gold now at Dh405 per gram on Thursday, marking a Dh3 per gram drop from earlier this week’s peak.
Meanwhile, weaker US employment figures and anticipation of upcoming interest rate decisions are helping to sustain gold prices.
According to the Dubai Jewellery Group, 24K gold is priced at Dh437.5 per gram, 22K at Dh405.0, 21K at Dh388.5, and 18K at Dh333.0 per gram.
Spot gold is trading at $3,628.97 per ounce, a 0.38% decrease.
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Similarly, gold prices declined on Wednesday due to expectations of a US Federal Reserve rate cut and renewed geopolitical tensions boosting safe-haven demand. The precious metal remains supported by last week’s weak payroll data and Tuesday’s revised benchmark showing US job growth was significantly slower than previously thought.
“Markets are now fully anticipating a 25-basis-point rate cut at next week’s Fed meeting, with a slight chance of a 50-basis-point cut. The series of disappointing labor market indicators has increased expectations for multiple cuts by year-end, enhancing the appeal of non-yielding assets. Investors will look to this week’s inflation data to confirm the dovish outlook,” stated Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Takieddine further noted that recent geopolitical risks have added momentum to the gold market. Rising tensions in the Middle East threaten ongoing ceasefire talks, while incidents in Polish airspace have raised concerns of broader escalation.
On the trade front, uncertainty remains after US President Trump urged the European Union to impose tariffs up to 100% on China and India as part of efforts to pressure Russia regarding the war in Ukraine. This increased policy unpredictability has bolstered gold’s demand, Takieddine said.
