Dubai gold rises over Dh11 overnight as global prices hit 3-week high
Precious metals extend gains as US shutdown optimism lifts markets
DUBAI – Dubai gold prices climbed sharply on Tuesday, reflecting a global upswing in bullion.
According to the Dubai Jewellery Group, 24K gold was priced at Dh499.25 per gram, compared to Dh488.25 on Monday – a rise of Dh11 overnight.
Similarly, 22K gold increased to Dh462.25 from Dh452.25, 21K rose to Dh443.25 from Dh433.75, and 18K gained to Dh379.75 from Dh371.75.
Global gold rally
Globally, spot gold rose 0.7% to $4,142.72 per ounce as of 4:58 GMT, touching its highest level since 23 October. US gold futures for December delivery also advanced 0.7% to $4,148.80 per ounce, driven by expectations that the US Federal Reserve could announce another interest rate cut in December.
The sentiment was further lifted after the US Senate passed a bill to end the government shutdown, removing a major layer of market uncertainty. The end of the shutdown is expected to restore key economic data releases such as the non-farm payrolls report, offering clarity on the American economic outlook.
With inflation easing and unemployment edging higher, Fed Governor Stephen Miran said a 50-basis-point rate cut may be appropriate next month. Lower interest rates generally boost demand for non-yielding assets like gold.
Other precious metals
Among other metals, spot silver gained 0.8% to $50.94 per ounce, platinum increased 0.4% to $1,584.40, and palladium surged 1.4% to $1,435.43.
Traders are currently pricing in a 64% probability of a December rate cut, keeping the outlook for gold and other precious metals firmly in positive territory.