Dubai: Gold prices in Dubai slipped by Dh1 on Thursday evening, with 24-karat gold quoted at Dh439 per gram and 22-karat at Dh406.50.
The decline mirrors a global pullback, where gold retreated by about 1 percent from record highs after the US Federal Reserve trimmed its benchmark rate by 0.25 percent.
Fed’s cautious stance
Gold briefly touched $3,707.57 per ounce following the rate decision, but soon fell nearly $70 as markets digested the Fed’s “go-slow” approach. Chair Jerome Powell emphasized a meeting-by-meeting assessment of inflation and policy, dampening hopes of rapid cuts.
A stronger US dollar has also weighed on demand, making gold more costly in non-dollar currencies.
Regional context
In India, 24-carat gold was trading at around ₹11,116 per gram on Thursday, with 22-carat at about ₹10,190.
Bigger picture
Despite this dip, gold remains nearly 40% higher year-to-date, outshining equity markets and surpassing the peaks of 1980. The rally has been driven by:
- Ongoing trade frictions,
- Geopolitical tensions,
- Central bank stockpiling,
Outlook
Dubai’s gold buyers may see some price relief in the short term, but with macro uncertainty still dominating, the metal continues to hold its appeal as a defensive asset.
