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Gold prices in the UAE surged to fresh all-time highs on Saturday, with 22K crossing the Dh400 mark per gram for the first time, driven by weak US job data that strengthened expectations of US Federal Reserve rate cuts.

According to Dubai Jewellery Group data, 24K gold climbed to Dh432.25 per gram, while 22K reached Dh400.25 per gram. Other variants also set new records, with 21K at Dh383.75 and 18K at Dh328.75.

So far in 2025, 24K has jumped Dh116 per gram, rising from Dh316.25 at the start of the year to Dh432.25, while 22K has gained Dh107.25 year-to-date.

Despite record highs, jewellers in Dubai remain optimistic, expecting demand to pick up during the upcoming festival and wedding seasons, although rising prices generally dampen jewellery and bullion purchases.

The global rally followed weak US employment data. The US economy added just 22,000 jobs in August, pushing unemployment to 4.3% — the highest since 2021. Spot gold rose 1% to $3,586.76 per ounce on Friday.

Analysts say markets are increasingly pricing in aggressive Fed cuts. Aaron Hill, chief market analyst at FP Markets, noted that 150 basis points of easing is now factored in for 2026, with 60 bps of cuts implied by year-end.

“While the job market is showing strain, 150 bps seems far-fetched with inflation still above the Fed’s 2% target,” Hill cautioned. “If inflation remains stubbornly high, it could curb expectations of faster rate cuts.”

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