Gold prices in Dubai climbed to yet another record high on Monday afternoon, edging dangerously close to the symbolic Dh450 per gram mark for 24K.
The surge has left UAE jewellery buyers divided over whether to buy now or wait, uncertain if the rally will continue or peak.
According to the Dubai Jewellery Group, 24K gold rose by Dh4.75, reaching Dh448.75 per gram. The 22K category followed suit, priced at Dh415.5, up Dh4.25 from the previous session.
Meanwhile, 21K gold was trading at Dh398.5 per gram, approaching the Dh400 level, while 18K stood at Dh341.5.
Analysts suggest that if momentum holds, 24K could cross Dh450 per gram today or later this week, marking a major milestone for UAE gold markets.
What’s driving the surge?
The rally is closely tied to global market shifts following the US Federal Reserve’s 25 basis point rate cut in September 2025 — its first since early this year.
“Although widely expected, the Fed’s decision had a significant impact on global markets, especially against the backdrop of a weakening US labour market and slowing job growth,” said Rania Gule, senior market analyst for Mena at xs.com.
Gule added that this move reflects a pivotal moment in the monetary policy cycle, as the Fed balances persistent inflation risks with the threat of recession. In such an environment, gold has retained its status as a key hedge for investors.
Geopolitical tensions add fuel
Beyond monetary policy, escalating geopolitical tensions are further driving gold demand.
“Russia’s intensified drone and missile attacks, along with growing unrest in Eastern Europe and the Middle East, have reinforced gold’s traditional role as a safe-haven asset,” Gule explained.
Historically, she noted, heightened geopolitical risks combined with looser monetary policies have sustained strong demand for gold — a trend likely to continue in the short to medium term.
Globally, spot gold was trading at $3,723.98 per ounce, up 1.03% as of 4 PM UAE time, further reflecting the metal’s growing strength in uncertain markets.
