Dubai gold price reaches Dh409 amid global rate surge
US, China to hold trade talks in Switzerland this weekend
Dubai gold prices remained close to their all-time highs on Thursday, as global bullion rose on the back of economic uncertainty triggered by the US Federal Reserve’s latest comments.
The Fed kept interest rates unchanged but warned of potential inflation and labour market risks, which boosted demand for the yellow metal as a safe haven asset.
While international markets reacted to both economic signals and anticipation of the upcoming US-China trade talks, the local Dubai gold market saw little change. The 24-carat gold price stood firm at Dh409, while 22-carat remained steady at Dh378.5. The price of 21-carat gold held at Dh363, and 18-carat gold stayed at Dh311.25.
Fed impact
Globally, spot gold rose 0.17% to $3,391.7 by 4:25 GMT, while US gold futures climbed 0.19% to $3,398.34. Bullion prices have surged nearly 10% in the past 30 days, reaching a record $3,500.05 on April 22. This uptick follows the Fed’s signal that it may consider future policy action if inflation or employment conditions worsen.
Fed Chair Jerome Powell said the central bank remains cautious as it watches both inflationary pressure and employment trends. Traders are now pricing in 77 basis points of rate cuts by year-end, starting in September.
Geopolitical sentiment was also shaped by news that senior officials from the US and China will meet in Switzerland over the weekend. US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng are set to discuss trade issues, as President Trump noted that China initiated the dialogue.
Although Trump ruled out reducing tariffs for now, the talks helped steady markets. The US dollar rose 0.06% to 99.67, slightly weighing on gold by making it costlier for non-dollar investors.
Other metals
Elsewhere in the precious metals market, silver gained 1.32% to $32.90, and platinum increased 1.06% to $984.38. Palladium, however, slipped 0.39% to $968.62.