Dubai gold rises by Dh7 in three days, new peak recorded
Global spot gold holds strong above $3,530 per ounce
DUBAI – Gold prices in Dubai surged to new highs on Wednesday, extending their rally for the third straight session.
According to Dubai Jewellery Group, 24K opened at Dh426 per gram, climbing from Dh421.5 on Tuesday and Dh418.75 on Monday. The upward trend was mirrored across other categories, with 22K trading at Dh394.5, 21K at Dh378.25 and 18K at Dh324.25 per gram.
The consistent rise has fuelled expectations that 22K could soon breach the Dh400 mark if momentum continues. Dubai’s gold market has been supported by strong investor appetite, central bank purchases and regional demand.
Global prices
On the international front, spot gold was trading at $3,533.24 per ounce at 9.30am UAE time, edging higher by 0.15 per cent. Prices held firm above $3,530 through the day and touched $3,546.99 earlier in the session, marking another record. US gold futures for December delivery added 0.3 per cent to $3,603.50.
Silver also stayed near a 14-year high at $40.74 per ounce, while platinum hovered around $1,401.59 and palladium gained 1.5 per cent to $1,146.75. The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported holdings rising to their highest level since August 2022.
US economy and politics
In the United States, mounting speculation over an imminent Federal Reserve rate cut has boosted demand for gold. Futures markets priced in more than a 90 percent chance of a 25-basis-point reduction at the September 17 meeting. Non-farm payrolls data, due Friday, will be a key signal for the Fed’s decision.
Adding to the volatility, President Donald Trump said his administration would ask the Supreme Court to rule on tariffs declared illegal by an appeals court. The tariffs remain in place until mid-October, intensifying uncertainty around trade. Trump has also continued his public pressure campaign on the Fed, seeking deeper monetary easing.
Asian and European markets
Across Asia, a selloff in long-dated bonds weighed on sentiment. The 30-year Japanese government bond yield hit a record 3.28 percent, while US 30-year Treasury yields hovered near the 5 per cent mark. Japan’s Nikkei slipped 0.69 percent as concerns over government debt mounted.
European futures showed a modest rise, though investors remain cautious amid political uncertainty in France and the UK. Sterling slipped to $1.3367, and the euro traded at $1.163. Meanwhile, Brent crude prices dipped slightly to $65.41 per barrel, adding another layer of complexity to commodity markets.