Gold prices in Dubai climbed to historic highs on Tuesday, edging closer to the Dh450 per gram milestone, as global spot prices advanced on a weaker U.S. dollar and growing expectations of U.S. Federal Reserve interest rate cuts.
According to Dubai Jewellery Group data, 24-karat gold rose to Dh444.0 per gram, setting a new record. Other categories also reached unprecedented levels, with 22K priced at Dh411.25 per gram, 21K at Dh394.0, and 18K at Dh338.0. Internationally, spot gold was trading at $3,683.61 an ounce at 9:13 a.m. UAE time, up 0.10 percent.
Analysts attributed the rally to dollar weakness and shifting monetary policy expectations in the United States. “The U.S. dollar is under pressure; therefore, gold and silver are pushing higher,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. She noted that markets are now anticipating as much as 100 basis points in rate cuts across the Federal Reserve’s next four meetings. “Beyond the policy rate decision, we’ll also get an update on the dot plot, which will provide further insight into Fed members’ expectations,” she added.
Chris Weston, head of research at Pepperstone, said gold’s surge reflects its appeal as a hedge against uncertainty. “The market has pushed gold to all-time highs for a reason. It remains uncorrelated to the S&P 500 and U.S. Treasuries, and as a portfolio hedge, it is working well, making the investment case highly attractive,” Weston said.
He emphasized that gold’s resilience, with only limited pullbacks, has drawn in systematic buyers. “The rate of change has picked up, and flow-based effects are undeniably pushing gold higher,” Weston noted. “Of course, the Fed meeting does pose risk to gold positioning, but the risk to U.S. growth remains skewed to the downside, and there is a growing sense that the Fed has miscalculated its economic outlook.”
Dubai, a major global hub for gold trading and jewelry retail, has seen strong demand for bullion and ornaments in recent months, even as higher prices test consumer budgets. Traders say the combination of robust local demand and international momentum has amplified the rally in the emirate’s retail market.
With prices nearing the Dh450 level for 24K gold, attention now turns to the Fed’s decision on Wednesday. A dovish outcome, with confirmation of multiple rate cuts ahead, could extend gold’s rally, while a more cautious stance may trigger short-term corrections.
For now, gold’s upward momentum continues to dominate trading floors, with both investors and consumers closely watching whether Dubai’s retail market will soon witness gold cross the Dh450 per gram threshold for the first time in history.
