Why are gold prices shooting up again globally?

DUBAI GOLD RATES FOR 24K NOW AT DH501 AS DOLLAR WEAKENS, TRADERS LIFT DECEMBER INTEREST-RATE-CUT BETS

- BY NIVETHA DAYANAND Assistant Business Editor JUSTIN VARGHESE Your Money Editor

Gold prices are climbing again, and many Dubai shoppers are feeling the shift.

The city's 24 carat rate pushed past Dh501 yesterday, while 22 carat rose to Dh464.25. After weeks of tight, almost frozen price movements, the gold market is suddenly alive again.

Gold is now holding near $4,159 an ounce, supported by two things everyday consumers rarely see but always feel: a weaker US dollar and rising expectations that the US Federal Reserve will cut interest rates in December.

A softer dollar makes gold cheaper for international buyers, increasing demand. And when traders think interest rates will fall, gold usually benefits because people tend to move money out of interest-bearing accounts and into assets like bullion.

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