By: Economy Middle east

Gold prices eased on Thursday but traded close to their record high reached a day earlier, supported by expectations of further U.S. rate cuts and ongoing political uncertainty.

In Dubai, gold rates declined, with 24-carat gold losing AED1 to AED465.75 and 22-carat gold falling AED0.5 to AED431.5. Additionally, 21-carat gold dipped AED.075 to AED413.5 and 18-carat gold ticked down AED0.5 to AED354.5.

Globally, spot gold declined 0.12 percent to $3,866.23 as of 4:30 GMT, after reaching an all-time high of $3,895.09 on Wednesday. Meanwhile, U.S. gold futures for December delivery fell 0.17 percent to $3,890.80.

Gold prices fell from their record high as the U.S. dollar index rose, making greenback-priced bullion more expensive for overseas buyers.

Rate cut bets, U.S. government shutdown support bullion
Gold prices marked a record run on Wednesday as soft ADP employment data ahead of the non-farm payrolls report strengthened expectations of Fed rate cuts, pressuring the U.S. dollar. The precious metal also drew support from the U.S. government shutdown.

The data showed that private payrolls fell by 32,000 in September, following a downwardly revised 3,000 drop in August. With much of the government now shut down due to partisan gridlock over funding, thousands of federal jobs could be at risk, and the release of key economic indicators, including Friday’s closely watched NFP report, may face delays.

Meanwhile, Chicago Fed President Austan Goolsbee said he is becoming increasingly concerned about inflation, cautioning against moving too quickly on rate cuts. Still, traders are almost fully pricing in a 25 basis-point reduction to the Fed’s benchmark rate this month, according to the CME FedWatch tool.

Gold, traditionally seen as a safe-haven asset during political and financial instability, tends to benefit from lower interest rates.

Adding to the uncertainty, the U.S. Supreme Court announced it will hear arguments in January on President Trump’s bid to remove Fed Governor Lisa Cook.

Gold prices rise more than 40 percent in 2025

Despite the decline in today’s session, gold prices are expected to rise 6 percent through the middle of 2026, underpinned by fresh demand from key groups of buyers who have contributed to a series of record highs for the yellow metal, said Goldman Sachs Research in a recent note. The precious metal has risen more than 40 percent in 2025 and is on pace for its third-straight year of double-digit gains.

The gold price is predicted to rise to $4,000 per troy ounce by the middle of next year, up from $3,772 on September 24, Goldman Sachs Research analyst Lina Thomas wrote in the team’s report. This gold price forecast is driven by strong structural demand from central banks and easing from the U.S. Federal Reserve, which supports ETF demand for gold.

Other precious metals

As gold prices declined from their record run, the precious metals market saw mixed movement on Thursday. Spot silver dipped 0.19 percent to $47.23, while platinum gained 0.14 percent to $1,559.22 and palladium surged 1.64 percent to $1,265.