Dubai gold slips by Dh1.25 as global rates shift
Precious metals mixed amid interest rate speculation and policy uncertainty
DUBAI – Dubai gold prices eased on Thursday, reflecting global market sentiment and cautious profit-taking amid heightened expectations of a December US interest rate cut.
According to Dubai Jewellery Group, 24K gold stood at Dh500.25 per gram, lower than Wednesday’s Dh501.50. The rate was Dh499.00 on Tuesday and Dh487.25 on Monday, marking a gradual rise followed by a slight retreat.
Meanwhile, 22K gold was priced at Dh463.25, compared with Dh464.25 on Wednesday, Dh462.00 on Tuesday, and Dh451.25 on Monday. The 21K rate came in at Dh444.25, and 18K at Dh380.75.
Global gold trends
Globally, spot gold slipped 0.5% to $4,145.08 per ounce, while US gold futures traded 0.6% lower at $4,140.80. Investors were seen booking profits after Wednesday’s climb that took gold to a near two-week high. The decline came as markets reacted to diverging signals from US monetary policymakers.
Futures markets indicate an 85% probability of a December rate cut, while some US Federal Reserve officials suggest waiting for clearer inflation progress.
What’s driving prices
US policy uncertainty has driven hedging flows into swaptions and derivatives, signalling growing caution among investors. Treasury yields held near one-month lows, and lower interest rate expectations continue to support gold. Non-yielding assets like gold traditionally perform strongly in low-rate environments.
Kevin Hassett, frontrunner to replace Jerome Powell as Fed Chair, aligns with former President Donald Trump on lowering rates, which has added further speculation to the market mood.
Other precious metals
In other precious metals, spot silver dropped 0.9% to $52.89 per ounce. Platinum rose 1.4% to $1,611.04, while palladium declined 0.9% to $1,409.87. Global market sentiment remains mixed across metals, reflecting conflicting signals on economic growth, employment trends, and easing policies.