Dubai gold hits Dh418.75; silver breaks $40 in global markets
Global bullion climbs on weak dollar and US rate cut bets
DUBAI – Gold prices in Dubai opened higher on Monday, with 24K retail jewellery priced at Dh418.75 per gram, compared to Dh415.50 on Saturday, marking a two-day increase of Dh3.25.
Rates for 22K stood at Dh387.75, while 21K was priced at Dh371.75 and 18K at Dh318.75.
The upward movement reflects the global rally in bullion markets, supported by a weaker US dollar and growing expectations of an interest rate cut by the Federal Reserve this month.
Global markets
Internationally, spot gold rose 0.8% to $3,475.72 per ounce, hitting its highest since April, while US gold futures for December delivery gained 0.9% to $3,546.10. The rally follows dovish remarks from US Federal Reserve officials, with traders pricing in nearly a 90% chance of a rate cut at the September 17 meeting. Silver also surged, climbing 2% to $40.44 per ounce, its strongest level since 2011, amid tightening supply conditions and safe-haven demand.
Platinum advanced 0.8% to $1,375.41, while palladium rose 1.1% to $1,121.09, underscoring broad strength across the precious metals complex.
US and Asia factors
In the US, markets are anticipating labour market data later this week, with forecasts pointing to modest job gains. The August payrolls report will play a pivotal role in shaping the Fed’s rate path. A recent appeals court ruling that deemed most of former President Donald Trump’s tariffs illegal has further weakened the dollar, which slid to 97.791 in August. This legal uncertainty over trade policy added another layer of support to gold prices.
Asian markets presented a mixed picture, with Japan’s Nikkei falling 2% on tech sell-offs, while Chinese shares gained on optimism over domestic AI investments. Despite the region’s stock fluctuations, gold’s safe-haven appeal kept it firmly on an upward trajectory.