UAE gold prices hold steady this morning at Dh439.50 per gram for 24-karat and Dh407 for 22-karat. The stability comes even after the US Federal Reserve’s recent interest rate cut caused global bullion to touch new record levels.
The overnight session was volatile. Global gold spiked to $3,707.57 per ounce right after the Fed announcement. But it closed 0.8% lower later, as investors considered Fed Chair Jerome Powell’s cautious comments on future rate cuts.
Analysts say political pressure on the Fed is also adding to market uncertainty. Governor Lisa Cook is facing a legal battle with Donald Trump, while Stephen Miran voted against the smaller cut. These developments are influencing investor sentiment.
Despite the volatility, UAE gold prices hold steady because of the UAE dirham’s peg to the US dollar. Local prices reflect international trends almost instantly. Currently, Indian gold trades at ₹11,116 per gram for 24-karat, showing the premium Dubai buyers pay due to import costs and local dynamics.
Over the past four weeks, 24-karat gold has risen by Dh37.75 per gram in Dubai, moving from Dh401 to nearly Dh440. This sharp rise has created a challenge for retail buyers. Many are delaying large purchases or choosing smaller pieces. However, long-term investors still see this as a good entry point.
Looking ahead, two more Fed cuts are expected this year. Lower rates usually support gold, but Powell’s careful approach suggests resistance to sharp rallies. Forecasts remain bullish, with Goldman Sachs seeing a possible rise toward $5,000 per ounce.
For now, jewellers in Dubai report steady demand, even as buyers weigh whether to spend more or wait.
