Dubai gold rates hit Dh402.75 following weak dollar movement
Global spot gold rises to $3,336.91
DUBAI: Gold prices in Dubai saw a noticeable uptick on Thursday as global markets reacted to a weaker US dollar and renewed political uncertainty in the United States.
In local markets, the price of 24-carat gold jumped Dh3.75 to reach Dh402.75 per gram. Similarly, 22-carat gold climbed Dh3.25 to Dh372.75, while 21-carat rose Dh3 to Dh357.5. The rate for 18-carat gold stood at Dh306.5, up by Dh2.75.
Global market impact
On the international front, spot gold edged up 0.17 percent to $3,336.91 as of 4:21 GMT. US gold futures also saw a gain of 0.22 percent, trading at $3,350.37. The uptick was driven largely by a dip in the US dollar, which fell to its lowest level since March 2022. A weaker dollar generally makes gold more attractive for holders of other currencies.
Fed concerns drive demand
The rise in gold prices came amid reports that US President Donald Trump had considered replacing Federal Reserve Chair Jerome Powell as early as September. Trump’s public criticism of Powell and his preference for a more dovish successor raised concerns about the Fed’s independence. These developments fuelled demand for gold, a traditional safe-haven asset in times of economic and political instability.
Investor attention on data
Traders are now awaiting the release of key US economic indicators, including GDP data and the Personal Consumption Expenditures (PCE) report, due Friday. Until then, analysts expect gold prices to remain relatively stable, supported by global uncertainty and expectations of future rate cuts.
Other precious metals
Alongside gold, the broader precious metals market also saw gains. Spot silver rose 0.17 percent to $36.36, platinum increased by 1.56 percent to $1,375.91, and palladium surged 4.42 percent to $1,104.67.