Dubai — Gold prices in Dubai fell on Wednesday, mirroring a sharp global decline as the US dollar strengthened and traders reacted to cautious comments from Federal Reserve officials.
In the UAE, 24-karat gold dropped to Dh475.25 per gram, down Dh8 from Monday. The 22-karat variety also declined to Dh440, compared to Dh448 earlier in the week. The price movement reflected the nearly 2% global fall in bullion during the previous session.
Globally, spot gold steadied around $3,940 an ounce after Tuesday’s sharp fall. The dollar extended its rally for a fifth consecutive day, while global equity markets weakened, marking their steepest slide in almost a month. Most major commodities also moved lower amid renewed investor caution.
The decline came after comments from several Federal Reserve policymakers, who refrained from supporting another interest rate cut in December. They noted that inflation pressures remain while labour market signals are softening. Traders now await upcoming remarks from St. Louis Fed President Alberto Musalem and Cleveland Fed President Beth Hammack for further policy direction.
Despite the latest dip, gold remains about 50% higher this year after touching record highs last month. The recent pullback coincided with outflows from gold-backed exchange-traded funds as some investors booked profits following the metal’s strong rally.
Analysts say markets are now assessing whether gold’s correction has stabilised or if further adjustment is likely, with currency movements and risk sentiment expected to guide near-term demand for safe-haven assets.
