Dubai Gold Prices Dip as US Data Delays Rate Cut

Dubai gold prices slipped slightly on Thursday morning after global bullion prices declined following strong US economic data.

At 9 am, 24K gold in Dubai was trading at Dh610.25, down from Dh610.50 the previous day. Meanwhile, 22K gold stood at Dh565, compared to Dh565.25 earlier. The fall was small but reflected global market movements.

US Jobs Data Impacts Gold Prices

Gold prices came under pressure after fresh US labour market data showed strong payroll growth and a drop in unemployment. This signalled that the US economy remains resilient.

Because of this, traders now expect the US Federal Reserve to delay its next interest rate cut to July instead of June. Higher interest rates usually weaken gold prices because gold does not offer interest income like bonds or savings instruments.

International gold prices dropped as much as 0.8% on Thursday, after rising 1.2% in the previous session.

Volatile Trend Over the Past Month

Dubai gold prices have shown sharp swings over the last four weeks.

• In mid-January, 24K gold was near Dh558 and 22K around Dh517.

• Prices then surged steadily, crossing Dh639 for 24K and Dh591.75 for 22K in late January.

• Early February saw a sharp fall, pulling 24K down to nearly Dh564.

• This week, prices rebounded above Dh610.

These movements highlight how quickly global sentiment and speculative trading can affect local gold prices.

Global Outlook Remains Strong

Despite the recent dip, gold prices remain well above $5,000 per ounce. After hitting a record high above $5,595 in late January, bullion saw a two-session decline of around 13% due to heavy profit-taking.

Major global banks remain optimistic about gold’s future:

• BNP Paribas expects gold to reach $6,000 per ounce by year-end.

• Deutsche Bank and Goldman Sachs also maintain bullish outlooks.

Analysts believe geopolitical tensions, diversification away from traditional reserve assets, and concerns over central bank independence could continue to support gold demand.

Silver Prices See Sharp Swings

Silver prices also experienced high volatility. The metal fell as much as 3.2% on Thursday, extending large price swings.

Silver has dropped nearly one-third from its January peak, marking one of the most volatile periods since 1980. Experts say silver prices move more sharply than gold due to smaller market size and thinner liquidity.

Interestingly, the global silver market is expected to see a sixth consecutive supply deficit, driven by strong investment demand. In China, tight inventories and strong industrial use have led the Shanghai Futures Exchange to restrict certain futures positions to stabilise stock levels.

What’s Next for Gold in UAE?

Gold’s direction in the coming weeks will largely depend on:

• US interest rate expectations

• Global economic data

• Investor demand for safe-haven assets

For now, UAE retail buyers continue to closely monitor both global trends and local gold price boards.