Dubai Gold Rebounds as US Rate-Cut Hopes Lift December Prices
<p>Gold prices across the UAE rebounded on Wednesday, regaining momentum after a brief dip earlier in the week that had momentarily benefited retail buyers. In Dubai, bullion prices rose in line with global markets as renewed expectations of US monetary easing strengthened investor sentiment, pushing gold back toward recent highs.</p><p>The benchmark 24k gold price in Dubai opened at Dh507.50 per gram, climbing from Dh503.75 the previous day. The widely traded 22k variety also moved higher, quoted at Dh470 compared with Dh466.50 on Tuesday. According to local jewellers, the ongoing festive and wedding season has played a significant role in magnifying the impact of daily price changes, particularly in a year when gold has already delivered substantial gains.</p><p>Retail demand remains resilient despite elevated prices, with buyers closely tracking small pullbacks as potential entry points. Jewellers noted that customer interest tends to intensify during December, when weddings, celebrations, and year-end gifting converge, often amplifying volatility even when global price movements are modest.</p><h3>November to December: A volatile transition</h3><p>A closer look at recent price movements highlights a market still in consolidation rather than reversal. Gold prices in Dubai experienced sharp swings throughout November before rebounding in early December. The precious metal opened November at Dh475.25 per gram for 24k and Dh440 for 22k. Prices then climbed steadily, peaking mid-month at Dh504.75 for 24k and Dh467 for 22k on November 12.</p><p>This rally was followed by a pullback, with prices sliding to Dh485.75 for 24k and Dh449.75 for 22k by November 17. The remainder of the month saw largely sideways trading, with 24k gold hovering between Dh489 and Dh493 and 22k holding around Dh453 to Dh456. Toward the end of November, prices edged higher again, closing the month at Dh508.50 for 24k and Dh470.75 for 22k.</p><p>December opened on a firmer note, briefly pushing 24k gold above Dh511 before easing back. After settling at Dh503.75 on December 2, prices climbed once more to Dh507.50 on December 3. This places current prices in the upper half of the recent trading range, reinforcing the view that gold is undergoing a seasonal recalibration rather than a sustained decline.</p><h3>US rate-cut expectations drive global sentiment</h3><p>The renewed strength in gold prices is closely tied to shifting expectations around US monetary policy. Traders are increasingly confident that the Federal Reserve will deliver a 25-basis-point interest rate cut in December. Market pricing now implies an 87–88% probability of such a move, a sharp rise from around 63% a month ago.</p><p>Expectations of lower interest rates typically benefit gold, which does not offer yield but gains appeal when real returns on other assets soften. Analysts point to a weaker US dollar and easing real yields as key drivers supporting bullion near multi-week highs.</p><p>In global markets, spot gold rose around 0.4% to trade near $4,224 an ounce, recovering after two sessions of losses and hovering close to its highest level in six weeks. Silver outperformed gold, climbing as much as 0.8% to approach $58.95 an ounce, supported by growing speculation about tightening supply and increased investor interest.</p><h3>Technical outlook remains constructive</h3><p>From a technical perspective, analysts continue to view the current phase as a healthy consolidation following October’s strong rally. Gold prices have formed a triangular pattern marked by higher lows above the rising 200-day moving average, a structure that typically signals underlying strength.</p><p>A decisive move above resistance near $4,245 an ounce could open the door for further gains toward $4,300 and beyond. On the downside, immediate support is seen around $4,126, with stronger protection near the 55-day moving average just below $4,000.</p><p>For Dubai buyers, the rebound to Dh507.50 for 24k gold underscores how quickly sentiment can turn in a market driven by global macroeconomic signals and seasonal demand. As December progresses, both investors and consumers are expected to remain highly sensitive to US policy cues and any fresh volatility in international markets.</p>