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Dubai: Gold prices jump nearly Dh3 per gram to over four-month high
For the first time since 1996, central banks hold more gold than US government bonds in their gold and foreign exchange reserves
- PUBLISHED: Mon 1 Sept 2025, 9:36 AM UPDATED: Mon 1 Sept 2025, 10:11 AM
Gold prices jumped nearly Dh3 per gram to more than four-month high at the opening of the markets in Dubai on Monday, inching closer to an all-time high due to expectations around interest rate cuts.
The Dubai Jewellery Group data showed 24K trading at Dh418.75 per gram at the start of the week, up from Dh415.5 per gram over the weekend. It hit an all-time high of Dh420 earlier this year.
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Among the other variants, 22K jumped to Dh387.75 per gram, 21K to Dh371.75, and 18K to Dh318.75.
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Spot gold was trading at $3,477.08 per ounce, up 0.84 per cent. It touched an all-time high of $3,500 earlier this year.
Alex Kuptsikevich, chief market analyst at FxPro, said gold was trading above $3,400 again at the end of the week.
“The upper limit of the trading range, within which the price has been fluctuating since April, is close to $3,430. The US Federal Reserve chief Jerome Powell's signals about a rate cut, unprecedented pressure from the White House on the Fed, and the continuing high level of geopolitical risks have brought the price back to this level. Washington's introduction of 50 per cent tariffs against India risks further deepening the divide between the West and the East, as well as the associated processes of de-dollarisation and diversification of gold and foreign exchange reserves by central banks in favour of precious metals,” said Kuptsikevich.
For the first time since 1996, central banks hold more gold (about 25 per cent) than US government bonds (about 20 per cent) in their gold and foreign exchange reserves.
“Gold bulls are drawing strength from the dynamics of the US yield curve. Yields on 2- and 10-year treasuries are falling. The market is painting a stagflationary backdrop, which is the best food for gold bugs,” he added.
