Dubai: Gold prices in the UAE climbed to a new record on Friday, extending a week-long rally driven by safe-haven demand, global tensions, and expectations of further U.S. Federal Reserve rate cuts.
By morning trade, 24K gold was priced at Dh523 per gram, while 22K stood at Dh484.25. The metal has gained nearly 5% since Monday, its sharpest weekly rise this year.
Jewellery retailers say this year’s Diwali season has become the costliest ever for gold buyers. Many shoppers are shifting to smaller coins and lighter jewellery, while some are delaying purchases in hopes of a post-festive correction.
Analysts attribute the surge to renewed U.S.–China trade tensions, an ongoing U.S. government shutdown, and rising bets that the Fed will cut rates again this month. Fed Chair Jerome Powell signalled a likely 25-basis-point reduction, fuelling further buying.
Globally, spot gold crossed $4,300 an ounce, while silver gained more than 3% amid tight market supplies. Banks including HSBC have lifted their gold price forecasts for 2025 and 2026, citing persistent investor demand and central-bank buying.
Lower interest rates reduce the cost of holding gold, making it more attractive compared with bonds and cash. Economists say the current setup remains strongly bullish for bullion as investors seek stability amid uncertainty.
