Dubai Gold Rate Slides as Global Influences Weigh

Dubai’s gold market saw a modest correction this week, with 22-karat gold easing to Dh403.50 per gram after touching record-highs. Still above Dh400 for several days, the rate reflects a delicate balance between investor optimism and market fatigue.

The higher-purity 24-karat gold also saw movement, climbing to Dh435.75 per gram before seeing downward adjustment. Globally, gold eased by about 0.5% to ~$3,623 an ounce, pulling back slightly from its recent highs. Observers link the dip to a surprise fall in U.S. producer prices, which has raised expectations that the Federal Reserve might begin cutting rates.

Lower interest rates tend to favor gold by reducing the opportunity cost of holding bullion. Over the past year, gold has surged almost 40% spurred by central bank demand, geopolitical uncertainty, and strong inflows into exchange-traded funds (ETFs). But now, some analysts warn that the rally is showing early signs of weakening momentum.

Nevertheless, many of the drivers that have underpinned gold’s rise remain intact. Interest rate expectations, inflation concerns, and safe-haven demand continue to support bullion prices. For gold-buyers, traders, and investors in Dubai and beyond, these shifts mean staying alert: small global data surprises, changes in Fed communications, or geopolitical flare-ups could move prices again.

Sources

• Gulf News – Dubai: Gold rates drops from record level, 22k now costs Dh403.50 a gram Gulf News
• Additional background: global gold trends and Fed rate expectations from financial markets coverage