Gold prices in Dubai retested their all-time highs on Friday morning as global rates for the precious metal surged above $3,650 per ounce, buoyed by renewed investor demand and expectations of U.S. monetary easing.
According to the Dubai Gold & Jewellery Group, 24-karat gold was trading at Dh440.5 per gram, while 22K stood at Dh408. Among other categories, 21K was priced at Dh391 and 18K at Dh335 per gram. The levels matched Tuesday’s peak, when bullion first hit this record territory.
The renewed rally comes as global investors closely watch signals from the U.S. Federal Reserve ahead of its September 18 policy meeting. Gold had briefly dipped earlier in the week to around $3,615 per ounce on profit-taking and a rebound in the U.S. dollar and bond yields, but quickly regained momentum.
“Gold quickly regained its upward momentum after the inflation report, rebounding from the trough around $3,615 per ounce to near $3,650, reversing the pullback,” said Linh Tran, market analyst at xs.com. Tran added that the metal’s short-term trajectory hinges on how the Fed interprets the latest economic data and frames its policy guidance.
Markets are currently pricing in a 25 basis-point cut to U.S. interest rates or, at the very least, a strong signal of easing from the central bank. “If the Fed confirms this bias and the forward guidance suggests room for further rate cuts, real yields have scope to decline further, reinforcing gold’s high base,” Tran said. “Conversely, if the Fed emphasises inflation risks and signals caution about the pace of easing, this could push gold into a choppy phase before the larger trend is validated.”
Analysts also point to wider geopolitical unease as another factor underpinning safe-haven demand. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted that gold continues to attract buyers amid uncertainty, with dovish Fed bets providing additional support. “Gold continues to benefit from dovish Fed bets and ongoing geopolitical unease, pushing it toward record highs,” she said.
Dubai’s gold market, one of the world’s busiest trading hubs for the precious metal, has seen strong retail interest as prices climb. While higher costs may temper purchases of jewellery, the city’s role as a global trading and refining centre ensures it remains sensitive to international price shifts.
With the Federal Reserve meeting just days away, investors and traders alike are bracing for more volatility. For now, gold’s surge to record highs signals that the yellow metal remains a key refuge for global markets navigating a mix of monetary uncertainty and geopolitical risks.
