Dubai gold prices edged higher on Thursday, providing shoppers with a fresh mid-December boost. The increase comes after three days of steady rates and follows a broad rally in global precious metals.
The 24-karat gold price in the emirate reached Dh509.75 per gram, up from Dh506.25 on Wednesday. Meanwhile, 22-karat gold rose to Dh472.25 per gram from Dh468.75, according to major jewellers. These changes reflect both local demand and global market movements.
Earlier in December, Dubai gold prices fluctuated modestly. The 24-karat rate opened at Dh511.75 per gram and slipped below Dh506 during the first week. Gradually, it rebounded to Dh509 in recent days. The 22-karat rate mirrored this trend, moving from Dh473.75 to around Dh468 before regaining ground.
Analysts attribute the recent increase to international factors, including expectations around US interest rates. Globally, bullion prices extended gains for a third consecutive day following the Federal Reserve’s decision to cut its benchmark rate. The Fed reduced the rate by 25 basis points to 3.5%–3.75%, marking its third reduction in as many meetings.
The rate cut has boosted investor confidence in gold as a safe-haven asset. Consequently, Dubai gold prices have aligned with this upward momentum, showing stronger retail demand alongside increased investment interest.
Retailers in Dubai noted a mild uptick in buying activity, particularly for 22-karat jewellery. They highlighted that the holiday season and upcoming festive period are likely contributing to steady purchases.
Market experts also emphasized that global economic factors, including inflation expectations and geopolitical uncertainties, will continue influencing Dubai gold prices. They suggested that further Fed decisions or global economic news could lead to additional short-term volatility.
Looking ahead, traders expect moderate gains in gold prices, supported by both international trends and seasonal demand. Consequently, Dubai gold prices may maintain upward momentum into mid-December, providing opportunities for both investors and consumers.
Dubai gold prices remain a key indicator of regional economic sentiment, bridging global financial movements and local market dynamics. Investors and shoppers alike are closely monitoring rates to make informed decisions.
