Prime Highlights
- Gold prices in the UAE increased, with 24-carat gold reaching AED480.75, as the U.S. dollar weakened, making gold more affordable for buyers.
- Analysts expect gold prices to stabilize before the next major move, supported by investor demand and central bank buying.
Key Facts
- Spot gold rose 0.12% to $3,988.28 per ounce, while U.S. gold futures climbed 0.11% to $3,997.30.
- Gold remains up nearly 50% in 2025, despite a 9% pullback from its record high of $4,381.21 in October.
Background
Gold prices in the UAE rose on Thursday, following gains in global markets as the U.S. dollar eased from its recent highs. The softer dollar made gold more affordable for international buyers, pushing prices slightly higher after days of consolidation.
In Dubai, 24-carat gold increased AED1.25 to AED480.75, while 22-carat rose AED1.5 to AED445.25. The 21-carat variant gained AED1 to AED426.5, and 18-carat gold climbed AED1.25 to AED365.75.
Globally, spot gold was up 0.12% at $3,988.28 per ounce by 5:33 GMT, while U.S. gold futures rose 0.11% to $3,997.30. Despite the recent volatility, the metal remains near the $4,000 mark, having pulled back about 9% since hitting a record high of $4,381.21 in late October.
“Gold has been trading between $3,886 and $4,028 for several sessions,” said Vijay Valecha, Chief Investment Officer at Century Financial. “With the dollar losing strength, gold prices are likely to stabilize before their next big move.”
The U.S. dollar index slipped 0.17% to 100.04, retreating from a four-month high. Meanwhile, strong U.S. labor data, showing 42,000 private jobs added in October, lowered expectations of more interest rate cuts this year.
Although the Federal Reserve cut rates last week, Chair Jerome Powell hinted it could be the final move for 2025. Traders now see a 63% chance of another cut in December, down from 90% earlier.
Despite recent corrections, gold remains up nearly 50% this year, supported by steady central bank buying and investor demand, which analysts say could continue to drive prices higher over the long term.
