Gold prices remained relatively stable on Tuesday as investors looked forward to the Federal Reserve’s annual conference this week for insights regarding potential rate cuts, while also considering Washington’s efforts to resolve the conflict in Ukraine.
In Dubai, gold rates have edged down, with 24-carat gold decreasing by AED2.5 to AED402.25. Similarly, 22-carat gold also fell AED2.5, now priced at AED372.25. Meanwhile, 21-carat gold lost AED2.25, bringing it to AED357.00, and 18-carat gold declined AED2.25 to AED305.75.
Spot gold maintained its position at $3,335.07 per ounce. Meanwhile, U.S. gold futures for December delivery experienced a slight decline of 0.1 percent, settling at $3,379.60. Fed Chair Jerome Powell’s remarks at the central bank’s symposium scheduled for August 21-23 in Wyoming could shed light on the economic outlook and expectations for policy easing.
Fed meeting expectations
Market participants currently perceive an 84 percent likelihood of a 25-basis-point rate cut at the Fed’s upcoming meeting, according to the CME FedWatch tool. Gold typically thrives in a low-interest-rate environment and during periods of increased uncertainty. The minutes from the Fed’s July meeting, which are set to be released on Wednesday, are anticipated to offer further insights into its policy direction.
On Monday, U.S. President Donald Trump informed President Volodymyr Zelenskyy that Washington would assist in guaranteeing Ukraine’s security in any prospective agreement to conclude Russia’s war. This assurance followed Trump’s meeting with Russian President Vladimir Putin in Alaska, which concluded without any agreement. Trump characterized his meeting with Zelenskyy as “very good,” and in a social media post, he indicated that he had reached out to the Russian leader to initiate arrangements for a meeting between Putin and Zelenskyy.
In other market movements, spot silver decreased by 0.5 percent to $37.82 per ounce, platinum increased by 0.1 percent to $1,323.76, and palladium saw a decline of 0.9 percent to $1,112.34.
Read more: Dubai 24-carat gold prices rise to AED404.75 as investors eye Trump-Zelenskyy meeting
Global gold demand surge
In addition to these dynamics, the World Gold Council’s latest report released in July 2025 highlights that global gold demand rose by 6 percent year-on-year in the first half of 2025, driven primarily by increased investment demand and central bank purchases. Central banks added a net 200 tons of gold during the first half of this year, continuing a trend of reserve diversification away from the U.S. dollar and euro, as documented in the Council’s Central Bank Gold Reserves Report. Moreover, geopolitical tensions and inflation fears globally have prompted a heightened appetite for gold as a safe-haven asset in emerging markets, particularly in India and China, where retail physical gold purchases surged by over 12 percent, according to the latest figures from the World Gold Council.
Similarly, the International Monetary Fund’s (IMF) August 2025 Commodity Market Report underscores that gold’s performance is increasingly influenced by fluctuating real interest rates and the strength of the U.S. dollar, factors that are expected to remain volatile amid ongoing monetary policy shifts and international uncertainties. The report also points to a projected slight tightening in the global gold supply chain due to recent mine output constraints and elevated production costs, potentially supporting prices in the medium term. These supply-side constraints are detailed in the IMF Commodity Market Report.
On the policy front, recent dialogues within the Bank for International Settlements (BIS) stress the importance of macroprudential policies in stabilizing financial markets, indirectly affecting demand for precious metals like gold, which investors use to hedge systemic risks. The BIS’s semi-annual report released in July 2025 elaborates on these influences and can be accessed through the BIS website.
