Dubai gold hits record highs as global bullion nears $3,400
Dollar weakness adds fuel to global gold rally
DUBAI gold prices rose on Friday, extending this week’s rally and edging close to record highs.
The retail rate for 24K gold in Dubai stood at Dh410.75 per gram, compared with Dh408.50 on Thursday. Similarly, 22K climbed to Dh380.25 from Dh378.25, while 21K increased to Dh364.50 and 18K to Dh312.50.
The latest uptick keeps the Dubai gold rate close to its highest-ever levels, with 22K maintaining a flat Dh380 mark and 24K firmly over Dh410. Market watchers say that the coming fortnight is likely to bring more upward pressure, especially with global bullion prices sustaining their momentum above $3,400 per ounce.
Global market trend
Spot gold was trading at $3,408.26 per ounce as of 0430 GMT, easing slightly by 0.3% on profit-taking after hitting $3,423.16 on Thursday – the highest since July 23. Bullion has advanced 3.9% so far this month, supported by expectations of an imminent US interest rate cut.
US gold futures for December delivery also slipped 0.2% to $3,469.
The dollar index was set for a monthly drop, making gold more attractive for investors holding other currencies. Analysts note that the precious metal remains a top choice ahead of what could be a period of looser US monetary policy.
Dollar, Fed and Trump
Traders now see an 86% probability of a 25-basis-point US rate cut in September, according to the CME FedWatch Tool. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) Price Index, is due later today and could provide further direction for markets.
Meanwhile, Federal Reserve Governor Lisa Cook filed a lawsuit on Thursday against US President Donald Trump, challenging his authority to remove her from office. Political uncertainty and monetary easing prospects are both lending further support to gold.
Other precious metals
Silver fell 0.7% to $38.81 per ounce, platinum dropped 0.7% to $1,349.45, while palladium slipped 0.1% to $1,101. Despite minor dips, precious metals remain broadly supported by global investor demand.