Dubai: Gold prices in Dubai remained below the Dh500 per gram mark on Tuesday, reflecting weaker global demand for the metal as investors anticipate further U.S. interest rate cuts.
As of 7 a.m., 24K gold traded at Dh481.25 per gram, while 22K stood at Dh445.50. The pullback follows a 3% global drop in prices on Monday, when gold briefly fell below $4,000 an ounce. Prices recovered slightly by 0.9% in early Tuesday trading.
Analysts said progress in U.S.-China trade talks lifted market confidence and reduced the appeal of safe-haven assets like gold.
Investor focus now turns to the U.S. Federal Reserve, which is expected to cut interest rates by 25 basis points on Wednesday, its second consecutive reduction this year. Lower rates typically make gold more attractive by reducing the opportunity cost of holding non-yielding assets.
Meanwhile, Treasury Secretary Scott Bessent said five candidates are being considered to replace Jerome Powell as the next Fed chair when his term ends in May 2026.
With global prices consolidating after months of gains, analysts warn gold could remain volatile in the near term as markets await clarity on monetary policy and trade developments.
