Dubai: Gold Prices Ease, Dropping Dh3 from Weekly Peak

Global uncertainty, weak US jobs data, and Fed rate-cut expectations continue to shape demand for the precious metal

Gold prices in Dubai slipped on Thursday, losing momentum from earlier highs this week, as global markets weigh economic data, interest rate expectations, and geopolitical risks.

According to Dubai Jewellery Group, 24K was trading at Dh437.5 per gram, 22K at Dh405.0, 21K at Dh388.5, and 18K at Dh333.0 per gram. The 22K price has fallen by Dh3 per gram from its peak earlier in the week.

On the international front, spot gold was trading at $3,628.97 per ounce, down 0.38%, reflecting cautious investor sentiment.

Market analysts note that the easing in prices comes despite renewed safe-haven demand. Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said:

“Markets are now fully pricing in a 25-basis-point rate cut at next week’s Fed meeting, with a small probability of a 50-basis-point move. The string of disappointing labour market indicators has strengthened bets on multiple cuts through year-end, increasing the appeal of non-yielding assets.”

He added that geopolitical tensions remain a key driver. Increased strains in the Middle East and recent incursions into Polish airspace have raised fears of escalation, boosting gold’s safe-haven appeal.

At the same time, uncertainty on the trade front is also shaping demand. US President Donald Trump has urged the European Union to impose tariffs of up to 100% on China and India as part of broader pressure on Russia amid the war in Ukraine. Analysts say such policy unpredictability has reinforced the case for gold in volatile markets.

Despite the latest dip, gold prices remain supported by weak US payrolls data and revisions showing slower-than-expected job growth. Investors are now awaiting fresh inflation data later this week for further confirmation of the Fed’s dovish outlook.