Dubai Gold prices were steady on Wednesday, slightly below recent record levels, as global markets took a break in front of major US economic data to be released later in the week. With 24-karat gold priced at Dh537.75 per gram and 22-karat at Dh498, both were well within striking range of the all-time highs of last week.
It has been a good year, and local prices have been on the high side at the beginning of the first trading week of 2026. It opened at Dh520.25 in January and briefly fell to Dh519.25 on January 2 before stabilizing around Dh522 over the weekend. On January 5, prices surged dramatically to Dh536.25 and Dh496.50 for 22-karat gold. On Tuesday, 24-karat gold was briefly trading at Dh538.50 and has since eased slightly, which is indicative of the market being in a consolidation stage at near-peak levels.
To the UAE purchasers, a narrow band of trading is the current trend, with the daily movements being strictly monitored in relation to the overseas bullion markets. Demand in the jewellery segment is tentative, according to jewellers, who consider that high prices will be offset by the anticipation of additional global signals.
Global Bullion Pauses after Sharp Climb
Spot gold stabilized around the world at around $4,490 an ounce, having gained over 4 percent in the three preceding sessions. Markets seemed to ignore the increased geopolitical tension and move ahead to the impending US economic markers, especially the release of the December jobs figures on Friday.
An earlier weak manufacturing index by the US in the week strengthened the anticipations that the Federal Reserve could further loosen its monetary policy in 2026 after three cuts of the rate in the previous year. Recently, Fed Governor Stephen Miran hinted that it might need to cut the rate by a full percentage point or more, claiming that the present policy is still too tight to allow growth.
Although the focus has turned to macroeconomic data, geopolitical risks remain to form the basis of gold’s attractiveness. Safe-haven demand has remained in the background with developments in Venezuela, renewed relations between China and Japan, and comments by the White House on Greenland.
Strong Fundamentals Underpin Prices
In 2025, the strongest annual performance of gold since 1979, gold was pushed by the aggressive central bank purchases and the strong inflows into exchange-traded funds. The rise in gold as a key hedge against the fragmentation of the global economy is best demonstrated by the fact that central banks added almost 300 tons to their reserves by the end of November.
According to analysts, the recent pullback is to be interpreted as consolidation but not a reversal. The overall trend is still in the uptrend with macroeconomic and geopolitical fundamentals, according to the market watchers, citing slow expansion indicators in the US but no indications of a full-scale decline.
Silver, however, was doing even better, gaining further in a fourth consecutive session as supply controls and retail demand, especially in Asia, maintained elevated prices.
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US Data to Test Market Direction
In the future, the rise in gold may be determined by the US employment, inflation, and growth statistics. Firm readings may support the dollar and exert pressure on the bullion prices, whereas weak ones may support the expectations of the rate cuts and may push the gold back to the recent levels above $4,500 an ounce. At the moment, Dubai gold prices seem to be on a break before historic levels, and markets are awaiting new signs before taking the next step in the direction of the trend.