Dubai’s gold market witnessed a significant recovery on Wednesday morning as prices surged by Dh5 per gram, effectively reversing most of the previous day’s losses. The Dubai Jewellery Group reported that 24K gold opened at Dh508.75 per gram, climbing from Tuesday’s closing rate of Dh503.75 per gram.
This upward trend extended across all variants of the precious metal. 22K gold advanced to Dh471.25 per gram, while 21K and 18K varieties reached Dh451.75 and Dh387.25 per gram respectively. The relatively new 14K category also saw gains, trading at Dh302 per gram compared to Tuesday’s close of Dh299.
Internationally, spot gold demonstrated parallel strength, trading at $4,221.76 per ounce at 9:10 AM UAE time—a notable 0.77 percent increase. This rebound followed Tuesday’s dip to $4,198 per ounce, which represented a 0.45 percent decline despite prices having reached a five-week peak just days earlier.
Market analysts attribute this volatility to shifting expectations regarding US monetary policy. According to Vijay Valecha, Chief Investment Officer at Century Financial, weaker PMI data has reinforced market anticipation of a Federal Reserve rate cut, with CME FedWatch indicating an 87 percent probability of such action occurring next week.
Valecha further explained that the weaker economic data typically supports gold prices, while increased Japanese bond yields have helped curb downward pressure on bullion as the yen strengthened against the dollar. Additionally, growing inflows into gold exchange-traded funds underscore the precious metal’s continued status as the preferred non-fiat asset among investors.
From a technical perspective, gold maintaining above the $4,200 threshold represents strong support for the commodity, suggesting potential stability in the near term amid ongoing market fluctuations driven by global economic indicators and central bank policy expectations.