Prime Highlights
- Dubai gold prices climbed, with 22-carat at Dh473 per gram and 24-carat at Dh511.50, driven by strong festive demand and global market trends.
- Investors anticipate US Federal Reserve rate cuts, boosting gold’s appeal as a non-yielding asset and supporting the upward price trend.
Key Facts
- Central banks, especially in emerging markets, have contributed to a 55% rise in gold prices this year.
- International gold trades at around $4,190 an ounce, rising nearly 5% this week and heading for a fourth consecutive monthly gain.
Background
Dubai gold prices continued their upward streak on December 1 as strong festive demand and global market momentum lifted rates across all categories. The price of 22-carat gold climbed to Dh473 per gram, up from Dh470.75 a day earlier. Meanwhile, 24-carat gold rose to Dh511.50, gaining nearly Dh3 during the morning session. Retailers reported increased buying interest during the four-day UAE National Day break from November 29 to December 2.
The rise also reflects global expectations of US Federal Reserve rate cuts. Traders believe a weaker dollar is likely as the Fed moves closer to easing policy. Gold tends to benefit in low-interest environments because it does not offer yield, making it more attractive than interest-bearing assets. Analysts say this “portfolio shift” is helping push Dubai prices higher in line with global sentiment.
Central banks, particularly in emerging markets, remain active buyers, contributing to a more than 55% rise in gold prices this year.
The international bullion market is also showing strong momentum. Gold trades at about $4,190 an ounce, rising nearly 5% this week and heading for a fourth straight monthly gain. Markets expect an 80% chance the Fed will cut rates by a quarter point in December. This year, gold already hit a record above $4,380, giving it its strongest annual gain since 1979.
For Dubai buyers, the recent surge means higher purchase prices but also confirms gold’s role as a stable store of value. Analysts say that if global prices stay above $4,000 and the Fed cuts rates again, Dubai retail prices are likely to remain on an upward track, even with potential short-term pauses around the Dh500 level.
