Dubai: Gold prices in Dubai slipped back below the Dh500-per-gram level on Monday, giving UAE jewellery buyers some relief after bullion posted a steep weekly decline in international markets.
The 24-karat gold rate was around Dh498 a gram, while 22K gold was trading at about Dh461 and 18K gold at roughly Dh379. The move came as global investors assessed a weaker-than-expected US employment report and reconsidered the likelihood of another Federal Reserve interest-rate increase this month.
International spot gold was trading around the $4,150-per-ounce area on Monday. Reuters reported that spot gold was down around 0.3% at $4,131.61 earlier in the session, with the US dollar gaining against major currencies.
Why US jobs data matters for gold
The US Bureau of Labor Statistics reported that non-farm payroll employment increased by just 29,000 in September, while the unemployment rate edged up to 4.2%. The September employment gain was substantially below the pace markets had expected.
The employment figures also included downward revisions to earlier data. July’s payroll figure was revised down by 31,000, while August was revised down by 29,000, leaving employment in those two months combined 60,000 lower than previously reported.
A softer labour market can reduce pressure on the Federal Reserve to raise interest rates. Markets have consequently scaled back expectations for an October rate increase.
That matters for gold because bullion does not pay interest. When rates and bond yields rise, holding interest-bearing assets can become more attractive relative to gold. Conversely, expectations of easier monetary policy can support demand for the metal.
The relationship is not straightforward, however. Gold also responds to the US dollar, Treasury yields, inflation expectations and geopolitical risk.
Fed policy remains the biggest market question
The Federal Reserve raised its target federal funds rate by 25 basis points in September, taking the range to 3.75%-4%. The central bank said inflation remained elevated while economic activity was expanding at a solid pace.
The latest employment report has changed the balance of expectations, but it does not guarantee that the Fed will leave rates unchanged. Inflation remains a concern, and higher energy prices could complicate the central bank’s decision-making.
That leaves gold caught between two competing forces: softer employment data can support expectations for less restrictive monetary policy, while high yields, a relatively firm dollar and inflation concerns can limit bullion’s gains.
Reuters reported that gold had already fallen about 3.4% over the previous week, its sharpest weekly decline since June.
What Dubai buyers should watch
For consumers in the UAE, the Dh500 threshold is psychologically significant, but the daily rate is only one part of the final cost of buying jewellery.
The quoted gold rate applies to the metal itself. Jewellery purchases can also include making charges and other costs, meaning the amount paid at a Dubai retailer can be higher than the headline per-gram rate.
The international gold price remains the most important factor to monitor. Because gold is traded globally in US dollars, movements in the dollar and expectations for US interest rates can quickly feed through to UAE prices.
For buyers considering jewellery, a fall in the headline rate does not necessarily mean prices will continue declining. Gold can move sharply in either direction as traders react to economic data, central-bank policy and geopolitical developments.
Gold market remains volatile
The latest move follows a period of considerable volatility in precious metals. The US jobs figures initially provided support for expectations that the Federal Reserve could ease off further rate increases, but gold has also faced pressure from elevated Treasury yields and dollar strength.
The next major signals will come from incoming US inflation and economic data, along with comments and policy signals from Federal Reserve officials.
For Dubai’s gold market, that means the move below Dh500 a gram should be viewed as part of a rapidly changing international market rather than a guaranteed new price floor.
The immediate takeaway for UAE consumers is straightforward: 24K gold is back below Dh500 a gram, but the direction of prices will continue to depend heavily on US monetary policy, the dollar, bond yields and global risk conditions.
What is the Dubai gold price today?
On October 5, 2026, 24K gold was reported at around Dh498 per gram in Dubai, with 22K at about Dh461 and 18K at about Dh379.
Why did Dubai gold prices fall below Dh500?
The move reflects changes in international gold prices following a sharp weekly decline, with investors assessing US employment data, interest-rate expectations, bond yields and the dollar.
How did the US jobs report affect gold?
The US added only 29,000 jobs in September and unemployment rose to 4.2%. The weaker labour-market data reduced expectations of an October Federal Reserve rate hike, an outcome that can support gold because it lowers the pressure for tighter monetary policy.
What is the current US Federal Reserve interest-rate range?
The Federal Reserve’s target federal funds range is currently 3.75%-4%, following a 25-basis-point increase in September.
Does a lower Dubai gold rate mean jewellery will cost less?
Not necessarily. The headline gold rate reflects the value of the metal, while jewellery bills can also include making charges and other costs.
Could Dubai gold prices fall further?
They could, but there is no certainty. Future prices will depend on international bullion prices, US monetary policy, Treasury yields, the dollar, inflation and geopolitical developments.
When will the next US jobs report be released?
The US Bureau of Labor Statistics has scheduled the October 2026 Employment Situation report for November 6, 2026.
