Dubai — Gold prices in Dubai edged higher on Wednesday morning, extending gains in a month marked by volatility driven by global trade tensions, geopolitical risks and uncertainty over U.S. monetary policy.
At 8:20 a.m., 24-karat gold was priced at Dh623.25 per gram, up from Dh619.75 the previous day. The price of 22-karat gold rose to Dh577 per gram from Dh573.75.
The local rise mirrors global bullion markets, where gold gained up to 1% during Asian trading. Investors continued to seek safe-haven assets amid uncertainty surrounding U.S. trade policy, escalating tensions in the Middle East and concerns over sovereign debt levels.
Gold has stabilized above the $5,000 per ounce level after recovering more than half of the losses recorded during a sharp sell-off earlier this month.
February has been marked by sharp price swings in Dubai’s retail gold market. Prices began the month near Dh589 per gram for 24K gold before dropping briefly to around Dh564. A steady rally followed, pushing prices above Dh600 by mid-month. Over the past week, rates have fluctuated between Dh615 and Dh626 per gram.
Market analysts say the fluctuations reflect rapid shifts in global sentiment, particularly around trade policy and interest rate expectations.
Investor focus remains on U.S. trade measures after the introduction of a broad 10% import levy this week, along with the possibility of further tariff increases. Markets are also reacting to potential national security investigations into certain imports, which could expand trade restrictions.
At the same time, expectations around Federal Reserve policy are influencing gold’s outlook. Minutes from the Fed’s January meeting indicated officials remain cautious about cutting interest rates. Prolonged uncertainty around borrowing costs and economic growth has supported demand for gold.
Concerns over rising sovereign debt levels have also prompted investors to shift toward tangible assets. Analysts describe the trend as a move away from currencies and bonds toward hard assets such as gold.
Rania Gule, Senior Market Analyst at XS.com MENA, said movements in silver highlight the broader forces shaping the precious metals market.
“Silver has witnessed dramatic moves in recent days, reflecting the sensitivity of this dual-natured metal, both investment and industrial, to political and monetary shocks at the same time,” she said.
As global uncertainties persist, Dubai’s gold market continues to reflect international trends, with buyers closely monitoring price movements for potential opportunities.
