[Editor’s Note: Check the latest gold prices here.]
Gold prices in Dubai slightly dipped at market opening on Thursday, as investors showed caution ahead of the US Federal Reserve’s meeting.
According to the Dubai Jewellery Group, the price of 24K gold decreased by Dh1.25, settling at Dh505.75 per gram on Thursday morning. Other gold variants, such as 22K, 21K, 18K, and 14K, also saw declines to Dh468.25, Dh449.0, Dh384.75, and Dh300.25 per gram, respectively.
Spot gold was trading at $4,193.1 per ounce, marking a 0.2% decrease.
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Linh Tran, a market analyst at xs.com, noted that in the medium term, the US interest rate cycle remains the most significant factor influencing gold prices.
“Recent data indicating a slowdown in US growth and consumption suggest that the Federal Reserve (Fed) may soon need to cut interest rates. The dip in bond yields to around 4.02% by the end of November, before rising again to near 4.088%, has created favorable conditions for gold, as the cost of holding gold decreases,” Tran explained.
Historically, periods of declining real interest rates have supported the precious metal, and the current situation seems to mirror that trend.
“If the Fed enters a rate-cutting cycle in 2026, the positive outlook for gold next year will be bolstered. I believe gold could reach new highs of around $4,500 per ounce, which is a reasonable expectation in an anticipated monetary-easing environment,” Tran added.
Alex Kuptsikevich, the chief market analyst at FxPro, pointed out that investors are focusing on monetary policy differences. The Fed is expected to reduce rates to 3% by 2026, while the Bank of Japan may increase rates to 1.25%.
“The anticipation can be more daunting than the event itself. President Donald Trump’s announcement that the new Fed chair will be named in early 2026, instead of by Christmas as previously expected, is putting pressure on the dollar. Along with Kevin Hassett’s expected leadership at the Fed, the potential for significant monetary expansion grows. This trend is unfavorable for the US dollar,” he mentioned.
