Dubai gold rate slips while global demand climbs 6 percent
Investors weigh Fed policy moves and Ukraine conflict developments
DUBAI – Gold prices in Dubai edged lower on Tuesday, with 24-carat gold falling by Dh2.5 to Dh402.25 per gram compared with Dh404.75 on Monday.
Twenty-two carat gold also dropped by Dh2.5 to Dh372.25, while 21-carat declined to Dh357.00 and 18-carat slid to Dh306.00.
The dip reflects broader global market movements as investors await the US Federal Reserve’s Jackson Hole symposium this week, where policymakers are expected to provide signals on interest rates.
Global gold market trends
Spot gold hovered at $3,337.06 per ounce by early trading, slightly higher than Monday, while US gold futures for December gained 0.1 percent to $3,380.70. Market participants assign an 84%chance of a 25-basis-point rate cut at the Fed’s next meeting, according to the CME FedWatch tool.
Minutes from the Fed’s July meeting, due on Wednesday, are expected to give more direction. Analysts note that gold generally benefits from lower interest rates and times of uncertainty.
In other metals, silver slipped 0.2% to $37.93 per ounce, platinum gained 0.4% to $1,328.20, and palladium retreated 0.9% to $1,112.50.
Geopolitical backdrop
Political developments are also influencing markets. On Monday, US President Donald Trump assured his Ukrainian counterpart Volodymyr Zelenskyy that Washington would guarantee Ukraine’s security in any prospective peace deal. The announcement followed Trump’s earlier meeting with Russian President Vladimir Putin in Alaska, which ended without resolution. Preparations for a potential Putin-Zelenskyy meeting are now underway.
Meanwhile, global gold demand has risen 6% in the first half of 2025, according to the World Gold Council. Central banks alone purchased a net 200 tons, extending their diversification away from the dollar and euro. Retail demand in India and China surged over 12% during the same period.
The IMF’s latest Commodity Market Report highlights gold’s sensitivity to dollar strength and real interest rates, with supply-side tightening expected due to mine output constraints. The BIS also pointed to the role of macroprudential policies in shaping safe-haven demand.