Dubai’s gold market extended its strong rally on Friday, with 24-carat gold reaching close to Dh506 per gram, marking one of the highest levels this month. The 22-carat variety traded around Dh468.75, recovering from a slight dip earlier in the week. The surge reflects a broader global trend as investors flock to gold amid renewed economic uncertainty and anticipation of delayed policy action from the U.S. Federal Reserve.
Local prices have risen steadily since early November, when 24K gold averaged around Dh481 per gram. Over the past five sessions, prices climbed rapidly from the Dh495 range to Dh506, while 22K gold advanced from roughly Dh444 to Dh469. Analysts note that most of the sharp gains have occurred within the last four days, signaling renewed momentum in the bullion market.
Globally, spot gold was trading near $4,190 an ounce on Friday, up nearly 5% for the week and on pace for its strongest performance in a month. The rebound follows weeks of market volatility and reflects a return to safe-haven positioning as global investors brace for a potential wave of delayed U.S. economic data after Washington’s six-week government shutdown.
Uncertainty around the U.S. economy has heightened speculation about the Federal Reserve’s next move. While some traders had expected an imminent rate cut, recent comments from Fed officials suggested little urgency to ease monetary policy. Even so, gold continues to attract investors seeking stability amid fluctuating bond yields and inflation concerns.
Adding to the bullish outlook, Federal Reserve Bank of New York official Roberto Perli said the central bank “won’t have to wait long” before expanding asset purchases to maintain liquidity levels in financial markets. Policymakers had already announced plans to end balance-sheet reductions from December 1, a move widely viewed as supportive for gold.
Gold has now gained nearly 60% year-to-date, putting it on track for its strongest annual performance since 1979. Central banks remain key drivers, steadily increasing reserves to hedge against currency risk and fiscal stress. With global uncertainty persisting and risk appetite weakening, market analysts expect Dubai’s gold rates to remain firm, potentially testing new highs in the coming weeks.
