Dubai’s 24-karat gold price slipped below AED 500 per gram, trading at about AED 481.50, following 25 basis point interest rate cuts by the US Federal Reserve and UAE Central Bank. The cuts weakened bullion demand despite some variants rising by AED 5. Globally, gold hovered near USD 4,000 per ounce after reaching record highs earlier this month.
The rate cuts lowered borrowing costs but reduced gold’s appeal as a safe-haven asset amid a stronger US dollar. Investors in the GCC closely watch gold as a cultural and financial asset, and current price dips could signal buying opportunities or caution depending on global macroeconomic trends.
This shift highlights the delicate balance investors must navigate in the gold market amid changing interest rates and currency movements.
