Dubai gold recovers with 24k at Dh507.50 as US rate cut bets dominate December

03/12/2025 04:45 AST

Gold bounced across the UAE on Wednesday, reversing a softer Tuesday that had briefly offered retail buyers an improved entry point. Prices in Dubai climbed for a second session in step with global spot markets and renewed expectations of US monetary easing.

The 24k benchmark opened at Dh507.50 a gram on Wednesday, up from Dh503.75 the day earlier. The popular 22k retail barometer was quoted at Dh470 from Dh466.50. Local jewellers said the festive and wedding season demand amplified the impact of even modest price swings in a market that has delivered steep gains through 2025. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Monthly snapshot
Gold prices in Dubai have whipsawed in a tight band through November before staging a December rebound, giving buyers a clearer view of the trend. The metal opened November at Dh475.25 a gram for 24k and Dh440 for 22k, climbing steadily to peak at Dh504.75 for 24k and Dh467 for 22k on 12 November. Mid-month trading saw a pullback to as low as Dh485.75 for 24k and Dh449.75 for 22k on 17 November, before a series of sideways closes held near Dh489-Dh493 for 24k and Dh453-Dh456.

Local pricing moved into late November around the Dh495-Dh500 zone for 24k and Dh458-Dh463 for 22k, closing the month at Dh508.50 and Dh470.75 respectively. December opened firmer, jumping from Dh511.75 for 24k and Dh473.75 for 22k on 1 December, settling at Dh503.75 and Dh466.50 on 2 December, and reaching Dh507.50 and Dh470 on 3 December. The month-to-date average now tracks above November's early lows but below its peak, positioning the current Dh507.50 price point closer to the upper half of the month's emerging range, reinforcing the case that this seasonal recalibration remains part of consolidation rather than reversal.

Fed cut bets tighten grip
Global bullion turned on Tuesday and Wednesday as traders doubled down on expectations that the US Federal Reserve will deliver a 25-basis-point cut in December. Market pricing for the move has reached 87% to 88%, up from 63% a month ago when equities last peaked.

"We are seeing classic macro positioning," a strategist said. "A softer dollar and easing real yields are giving metal bulls enough cover to defend six-week highs without technical disorder."

Gold gained 0.4% on Wednesday to trade at $4,224.31 an ounce, after two days of decline, steadying near its highest level in six weeks.

Silver ran hotter. The white metal rose as much as 0.8% to hit $58.9471 an ounce, beating a prior peak of $58.84 set two sessions earlier. "The market is sniffing supply tightness," said one trader, pointing to renewed speculative interest.

Triangle pattern brings the bulls back
Technical desks tracking spot bullion see the recent consolidation as an orderly digestion of October's overbought surge. The triangular build-up of higher lows above a rising 200-day average has encouraged bulls.

A sustained push above resistance near $4,245 an ounce could unlock $4,300, $4,337 and the previous $4,382 high. Support is clustered at $4,126, with a firmer footing at the 55-day average near $3,998, levels investors expect buyers to defend on deeper volatility.