Dubai’s gold market opened with modest gains on Wednesday as the precious metal continued its upward trajectory following a weekend of significant price increases. The benchmark 24K gold variety climbed to Dh521.75 per gram, marking a noticeable increase from Tuesday’s closing price of Dh516.75. Other variants including 22K, 21K, 18K, and 14K followed suit, trading at Dh483, Dh463.25, Dh397, and Dh309.75 respectively.
International spot gold prices demonstrated even stronger momentum, reaching $4,337.96 per ounce by 10 AM local time with a 0.84% gain. Silver similarly outperformed with a substantial 4.46% surge to $66.28 per ounce.
Market analyst Walid Koudmani of Naga highlighted that gold remains well-positioned for continued support as expectations for additional Federal Reserve rate cuts maintain their strength. “This week’s upcoming economic data could play a pivotal role in shaping future monetary policy expectations,” Koudmani noted. “A combination of stable inflation and weakening labor conditions could raise expectations of lower rates, further bolstering bullion.”
The analysis comes just days after the US Federal Reserve implemented a 25 basis point rate reduction, bringing the target range to 3.5-3.75%. The central bank’s unexpectedly dovish stance under Chair Jerome Powell has subsequently weakened the US dollar, creating favorable conditions for gold pricing.
Beyond monetary policy, Koudmani identified multiple factors driving gold’s appeal. Persistent geopolitical tensions spanning Eastern Europe, the Middle East, and emerging frictions in Asia continue to fuel risk aversion and safe-haven demand. Additionally, concerns regarding the Fed’s leadership transition and consistent central bank diversification away from the dollar provide structural support.
The analyst projected a constructive medium-term outlook for gold, emphasizing that while the path might not be linear, macroeconomic conditions suggest meaningful upward price potential. Consistent ETF inflows and sustained central bank purchasing activity further reinforce the metal’s positive trajectory amid expectations of a lower interest-rate environment and global growth slowdown.