By: Economy Middle east

Gold prices edged up on Thursday after the U.S. Federal Reserve delivered its third interest rate cut this year. However, internal divisions regarding the decision left investors unsure about the trajectory of monetary easing in the year ahead. Meanwhile, silver extended its rally to set another record high.

In the UAE, gold rates witnessed notable increases, with 24-carat gold rising by AED1.5 to AED507.75 and 22-carat gold gaining AED1.25 to AED470. Additionally, 21-carat gold added AED1.25 to reach AED450.75, while 18-carat gold gained AED1 to AED386.25.

Meanwhile, 14-carat gold gained AED0.75 to AED301.25.

Globally, spot gold was up 0.31 percent to $4,209.83 per ounce as of 6:16 GMT after reaching its highest since December 5 earlier in the session. Meanwhile, U.S. gold futures for February delivery inched up 0.27 percent to $4,236.20 per ounce.

Fed cuts rates in split decision

Gold prices rose after the Fed delivered a 25-basis-point rate cut on Wednesday in a split decision, while signalling that additional reductions may not be forthcoming until there is more definitive evidence of a cooling labor market and inflation that “remains somewhat elevated.”

Although most policymakers anticipate further cuts will be necessary next year, an unprecedented six officials voted against this quarter-point adjustment. Fed Chair Jerome Powell also refrained from offering any guidance on when, or if, additional easing might occur. Lower interest rates generally bolster the appeal of non-yielding assets like gold.

Attention now turns to next week’s U.S. labor market and inflation releases for November, followed by a more comprehensive report on third-quarter economic growth.

Silver hits new record high

As gold prices rose, spot silver rose over 2 percent to $61.82 per ounce after climbing to a record $62.88 earlier in the session, extending its year-to-date surge to 113 percent. The rally has been fueled by robust industrial demand, shrinking inventories and the metal’s recent inclusion on the U.S. critical minerals list.

“Silver’s relentless surge in 2025 will be remembered as one of the most dramatic revaluations in modern precious metals history. Having spent much of the past decade oscillating between being perceived as a monetary metal and an industrial input, silver finally resolved that identity crisis this year by being both at the same time—just as supply constraints became impossible to ignore,” said Ole Hansen, head of commodity strategy, Saxo Bank.

The doubling in price did not happen in isolation. It began with gold, Hansen explained. When the gold-silver ratio spiked above 105 in April, an extreme rarely sustained, silver increasingly looked mispriced. That valuation gap became the entry point for both speculative and longer-term investors.

“Once key technical resistance levels gave way from August onwards, momentum buying accelerated sharply, turning relative value into outright price discovery,” he added.

Other precious metals

As gold prices rose on rate easing and silver posted a new high, other precious metals witnessed downward pressure. Spot platinum saw a marginal decline of 0.02 percent to $1,655.70, while palladium fell 0.31 percent to $1,471.70.