Dubai: Gold prices in Dubai held steady on Tuesday, reflecting a cautious mood in global markets ahead of the US Federal Reserve’s upcoming policy meeting. Retail rates opened unchanged, with 24-karat gold trading at Dh506.25 per gram and 22-karat at Dh468.75.
The stability comes after a week of minimal movement in the local market. Since December began, 24-karat gold has ranged between Dh503.75 and Dh511.75, while 22-karat has traded between Dh466.50 and Dh473.75. The sharpest decline was recorded on December 1, when 24K slipped from Dh511.75 to Dh503.75, tracking weakness in global bullion prices. Rates have remained mostly flat since then.
Global Gold Pauses Ahead of Fed Outlook
In international markets, gold traded near $4,193 an ounce on Tuesday after a slight dip in the previous session. Investors are waiting for the Federal Reserve’s final meeting of the year, which is expected to shape interest-rate trends through 2026.
US Treasury yields edged higher on Monday as traders positioned ahead of government bond auctions and Wednesday’s policy announcement. Market expectations point to a quarter-point rate cut, though analysts anticipate fewer cuts overall next year.
Comments from Kevin Hassett, seen as a contender for the next Fed chair, signalled a cautious approach. He said it would be “irresponsible” to outline a firm rate path over the next six months, suggesting uncertainty in the policy outlook. Higher interest rates typically weigh on gold, which does not offer yield.
Strong 2025 Performance, but Momentum Slows
Gold remains one of 2025’s best-performing assets, gaining nearly 60% this year. The rally has been supported by sustained central-bank purchases and strong inflows into gold-backed ETFs. Prices hit a record high above $4,380 an ounce in late October before easing.
While expectations of additional US monetary easing support sentiment, some analysts warn the recent rally may be losing momentum as markets consolidate.
