Dubai, UAE – Gold prices in Dubai surged to a near one-week high, with 24K gold trading at Dh 499 per gram as of 9 AM, up nearly Dh 12 in just 24 hours.
Other gold purities also saw gains: 22K reached Dh 462, 21K hit Dh 443, and 18K traded around Dh 379.75 per gram.
Global Gold Rally Fueled by Fed Rate-Cut Hopes
On the international front, spot gold climbed to $4,146.5 per ounce, driven by renewed optimism over a possible U.S. Federal Reserve interest rate cut.
Analysts say the mixed messaging from Fed officials, combined with soft economic data, is fueling volatile gold markets.
What’s Supporting the Local Upswing?
Safe-Haven Demand: Investors are increasingly turning to gold as a hedge amid global economic uncertainty and geopolitical risks.
Dovish Fed Signals: Comments from Fed policymakers suggesting a possible rate cut have bolstered gold’s appeal.
Narrow Trading Band: Despite the recent jump, Dubai’s gold market remains within a tight range for November, indicating cautious but active buying.
Market Views and Forecasts
Aaron Hill, chief market analyst at FP Markets, noted that expectations for a Fed rate cut are keeping gold prices elevated.
Vijay Valecha, CIO at Century Financial, pointed out that mixed signals from Fed officials are creating both upward momentum and continued uncertainty for bullion.
Risks and Things to Watch
While the rally is strong, there are risks:
If the Fed’s rate-cut hopes dim again, gold could face pressure.
Global data releases – especially U.S. economic indicators – will be closely watched to gauge how likely a rate cut truly is.
Geopolitical tensions and central bank behavior could continue to influence demand for safe-haven assets like gold.
