By: Economy Middle east

Gold prices shattered records on Monday, breaking the $4,400 per ounce barrier for the first time amid heightened bets on U.S. Federal Reserve rate reductions. Silver also scaled fresh peaks ($68.98, up 2.74 percent), reflecting broader precious metals momentum driven by monetary policy outlooks and safe-haven demand. In the UAE, local gold rates climbed steadily, underscoring the global rally’s regional impact.

Spot gold is now trading near $4,401.57 after peaking, reflecting a 6.5 percent monthly advance and 66 percent yearly growth via CFD benchmarks. FXStreet noted safe-haven inflows amid softer U.S. inflation prints, propelling gold toward $4,380 intraday. These movements occurred against a backdrop of global uncertainty, including geopolitical tensions and tariff looming shadows.

In Dubai, 24-carat gold traded at AED529.75 per gram in morning sessions on December 22, up AED7.00 from AED522.75 the previous day. This marks a continuation of upward trends, with 22-carat at AED490.75 and 21-carat at AED470.50 per gram. Also, 18-carat gold rose AED5.50 to AED403.25.

Fed rate cut anticipations

Gold futures surged 1.12 percent to an all-time high of $4,383.73 per ounce early Monday, extending a two-week rally fueled by investor anticipation of further Fed easing. Markets now price in two rate cuts for 2026 following last week’s quarter-point reduction, despite mixed U.S. economic signals on growth and inflation. President Donald Trump’s calls for more aggressive cuts amplified these expectations, pushing the metal up nearly 67 percent year-to-date. Silver mirrored the surge, hitting $69.15 per troy ounce, a 3 percent daily gain and up 35 percent over the past month. The white metal reached an intraday peak of $69.45, its historical high, amid similar rate-sensitive dynamics and industrial demand pressures. Trading Economics data confirms silver’s 133 percent annual rise, highlighting its outperformance in the precious metals sector.

Federal Reserve policy remains the dominant catalyst, with traders betting on looser conditions despite recent data ambiguities. Last week’s 25-basis-point cut set the stage, amplified by Trump’s public advocacy for deeper reductions to spur growth. Lower rates diminish the dollar’s appeal and bond yields, channeling capital into non-yielding assets like gold. Geopolitical risks and safe-haven flows added tailwinds, as noted by FXStreet amid U.S. inflation softening. Industrial silver demand from data centers, EVs, and potential tariffs further pressured supplies.