By: Economy Middle east

Gold prices bounced back from a near one-week low, spurred by bargain-hunting among investors ahead of crucial U.S. private payroll data that could shape interest rate expectations. After a decline of over 1.5 percent in the previous session—hitting levels not seen since October 30—gold’s safe-haven appeal drew renewed buying interest amid a cautious financial market.

As of early trading on November 5, gold rates in the UAE saw notable increases. The price of 24-carat gold climbed by AED3.25 to AED478.50. Similarly, 22-carat gold rose by AED3.00, now priced at AED443.00. Additionally, 21-carat gold increased by AED2.75 to AED424.75, while 18-carat gold saw a rise of AED2.50, settling at AED364.00.

Globally, spot gold increased approximately 0.42 percent to $3,967.14 per ounce, recovering from a dip the previous day when prices fell to around $3,900. U.S. December gold futures also edged up 0.37 percent, trading at $3,974.27.

Upcoming payroll figures in focus

The dollar index, which significantly influences gold’s appeal, hovered just below a recent three-month high, maintaining some pressure on bullion. However, traders are closely watching the upcoming U.S. private payroll figures, which are expected to provide new insights into the Federal Reserve’s potential for further interest rate cuts this year.

Last week, the Fed implemented another interest rate cut, with Chair Jerome Powell suggesting this might be the last reduction for 2025. This guidance tempered market expectations, with the probability of a December rate cut now around 69 percent, down from over 90 percent before Powell’s comments. Market participants view the upcoming employment data as crucial for shaping monetary policy and, consequently, gold prices.

Analysts noted that bargain hunting was the key driver behind gold’s rebound, amid a general risk-off sentiment in financial markets boosting safe-haven demand. Asian equity markets continued to decline early Wednesday, reflecting investor concerns over high valuations. Expers also warned that if the private payroll data exceeds expectations, gold could face additional downward pressure, potentially dropping near $3,900 again.

Recent price volatility

Gold’s price trajectory has been volatile in recent weeks. The metal reached an all-time high of nearly $4,381 on October 20, 2025, driven by strong demand amid economic uncertainties and slower rate hikes. Since then, prices have fallen nearly 10 percent, influenced by a stronger dollar and diminished hopes for aggressive rate cuts.

Adding to gold’s challenges, China, the world’s largest consumer market, ended a long-standing tax exemption for certain gold retailers as of early November, potentially dampening retail demand in the region. This development exerted regional pressure on prices, even as global macroeconomic factors continued to support bullion.

Silver prices rose 0.19 percent to around $47.64 per ounce, while other precious metals saw mixed results: platinum declined 0.47 percent to $1,543.10, while palladium increased modestly by 0.14 percent to $1,422.50.