Gold rates in Dubai have surged to unprecedented levels, with 24-carat gold now priced at Dh550 per gram, reflecting strong global demand and ongoing market volatility.
Dubai gold prices hit an all-time high as 24-carat gold climbs to Dh550 per gram
Gold rates surged to unprecedented levels in both Dubai and international markets on Monday, with 24-carat gold opening at Dh550 per gram, marking a fresh all-time high.
According to figures released by the Dubai Jewellery Group, the price of 24K gold climbed by Dh7 per gram to Dh550.25 during early trading. At the same time, 22K gold recorded an increase of Dh6.5, reaching Dh509.5 per gram. Other categories also posted gains, with 21K gold priced at Dh488.75, 18K at Dh418.75 and 14K at Dh326.75 per gram.
On the global stage, spot gold crossed the crucial psychological barrier of $4,600 an ounce for the first time on Monday. The rally was supported by strong demand for safe-haven assets, alongside expectations that interest rates could be reduced, keeping bullion attractive to investors.
By 9am UAE time, gold was trading at $4,568.13 per ounce, up 1.31 per cent. Analysts attributed the rise to heightened geopolitical tensions, ongoing economic uncertainty and increasing speculation that the US Federal Reserve may shift towards easing monetary policy.
Among the major factors fuelling the surge in precious metals are rising concerns over potential US military action against Iran amid protests in the country. US President Donald Trump has issued multiple warnings of possible strikes, contributing to market unease.
Investor sentiment was further shaken after Federal Reserve Chairman Jerome Powell revealed he is facing a federal criminal investigation linked to the $2.5 billion renovation of the central bank’s headquarters. The news added to volatility in early trading on Monday.
Powell has described the investigation as a “pretext,” suggesting it is being used by the government to intensify pressure on the central bank to move towards lowering interest rates.
The sharp rise in gold prices has sparked renewed interest among retail buyers and investors in the UAE, particularly ahead of the wedding and festive season. Jewellery retailers across Dubai said footfall remains steady, though some customers are choosing lighter pieces or delaying purchases in anticipation of possible price corrections. Investment-grade gold, including coins and bars, has seen increased demand as residents look for safer avenues to park their savings amid market volatility. Traders noted that despite higher prices, gold continues to hold strong emotional and cultural significance for buyers in the region.
Market analysts say global uncertainty has played a central role in pushing gold to record levels. Ongoing conflicts, diplomatic tensions and concerns over global economic growth have led investors to seek protection in traditionally stable assets. With equity markets experiencing bouts of volatility and bond yields fluctuating, gold has emerged as a preferred hedge. Analysts add that central bank buying, particularly from emerging economies, has also contributed to sustained demand, helping prices remain elevated despite occasional profit-taking.
Currency movements have further supported the rally in bullion prices. A weaker US dollar has made gold more attractive to investors holding other currencies, boosting international demand. Historically, gold tends to move inversely to the dollar, and recent softness in the greenback has amplified buying interest. Additionally, expectations that the US Federal Reserve could begin cutting interest rates have reduced the opportunity cost of holding non-yielding assets such as gold, adding further momentum to the price surge.
Local jewellers and bullion dealers in Dubai say they are closely monitoring price trends to manage inventory and pricing strategies. Some retailers have introduced flexible payment options and promotions on making charges to cushion the impact of high gold rates on consumers. Industry insiders say that if prices remain elevated for a prolonged period, buying behaviour could shift further towards exchange schemes, where customers trade old jewellery for new designs while paying only the difference in value.
Looking ahead, analysts caution that while gold’s long-term outlook remains positive, short-term fluctuations are likely as markets react to economic data and geopolitical developments. Any signs of easing tensions or stronger-than-expected economic growth could trigger brief pullbacks. However, many experts believe gold will continue to find support at higher levels, especially if uncertainty persists and central banks maintain accommodative policies. For now, the precious metal’s record-breaking run reflects deep-rooted investor anxiety and a strong desire for stability.
