Dubai gold price ease: Gold price in Dubai has witnessed a slight drop by Thursday evening. However, 22-karat gold continued to trade above the Dh400 mark per gram for the fifth consecutive day.
The famous 22-Karat variety that most UAE shoppers favored opened at Dh 407.25 per gram before easing to Dh 403.50. However, 24-karat gold slipped to Dh 535.75 per gram, which shows the global market movement.
The spot gold retreated 0.5 percent to around $3623 an ounce on the international front. So, it pulled back from its weekly high. However, the dip followed a surprising drop in the US producer prices, which strengthened expectations of the Federal Reserve rate cut next week.
Why are Dubai Gold Prices Moving?
Now, the market sees a quarter-point Fed rate cut at the September 16-17 meeting as certain. However, further reduction is expected by year-end. Moreover, lower interest rates support bullion as the non-yielding asset becomes more attractive compared to bonds or cash holdings.
Gold has surged nearly 40 percent so far in 2025 due to the following reasons:
- Central bank purchases worldwide
- Ongoing geopolitical risks
- Strong inflows into exchange-traded funds (ETFs)
On the other hand, analysts are alert that signs of fatigue are emerging in the short term, and the rally has been impressive.
Expert Insights for Dubai Gold Prices Ease
Dubai is the key global hub for gold buyers, especially ahead of the festive and wedding seasons. Despite this dip, industry experts believe the long-term outlook for bullion is positive.
One market analyst said, “Even with the short-term correction, demand drivers, like the central bank buying and geopolitical uncertainty, provide a solid base for gold.
The sustained pricing above Dh 400 per gram shows resilience in the local market for the UAE residents. Moreover, many buyers continue to view gold not only as jewelry. However, they saw it as a safe haven investment amid economic uncertainty.
Gold Holds Strong as Safe-Haven Investment
Indeed, gold prices in Dubai eased slightly this Thursday. However, the market continues to show strong fundamentals. Moreover, bullions may find further support in the week ahead due to the Federal Reserve, which is poised for a rate cut. Thus, the trend highlights the dual role of gold as both a cultural purchase and a strategic investment for the UAE shoppers.
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