By: Economy Middle east

Gold prices climbed modestly on Tuesday, buoyed by a weakening U.S. dollar as markets braced for pivotal year-end employment data. As of 02:30 GMT, the precious metal traded around $4,290 per ounce early in the session, reflecting a slight gain amid mixed global cues. Investors positioned cautiously, balancing safe-haven demand against profit-taking pressures. 

Spot gold is currently trading at $4,282.05, 0.55 percent lower, while U.S. gold futures are down 0.60 percent at $4,309.20.

In the UAE, gold rates dipped slightly on Tuesday. The price of 24-carat, 22-carat, and 21-carat gold decreased by AED1.50 to AED516.75, and AED478.50, and AED458.75. Meanwhile, 18-carat gold lost AED1.25 to reach AED393.25, and 14-carat gold declined by AED1.00 to AED306.75.

Gold futures opened with a bid, touching $4,290.50 per ounce by 00:08 GMT, down marginally 0.32 percent from prior levels but stabilizing higher intraday. This followed a dip in Indian markets, where 24-carat gold fell 0.33 percent to INR133,710 per 10 grams (roughly $1,580 per ounce equivalent), driven by local profit booking. Silver accompanied the move lower, shedding 1.69 percent to $62.94 per ounce.

Regional variations highlighted the divergence: Indian retail prices hovered at INR13,539 per gram for 24K gold, up slightly from recent sessions despite the pullback. In contrast, global benchmarks like those on Kitco showed spot gold bid/ask at $4,290.50/$4,292.50, underscoring resilience amid currency shifts. Year-to-date, gold surged over 62 percent from last December’s levels, per broader tracking data. 

Dollar eases, data awaited

A softer dollar index provided the primary lift, making gold more affordable for international buyers. The greenback retreated ahead of the U.S. December jobs report, expected to influence Federal Reserve rate cut expectations for 2026. Analysts noted that persistent dollar weakness, coupled with subdued U.S. economic indicators, sustained gold’s appeal despite today’s tempered gains. 

Geopolitical calm contributed to the downside pressure, with progress in Russia-Ukraine peace talks reducing safe-haven flows. Central bank purchases and ETF inflows countered this, maintaining upward momentum; recent record highs stemmed from these factors alongside bond market shifts. U.S. data looms large: a softer print could accelerate Fed easing bets, propelling gold higher, while robust figures might trigger pullbacks.