Dubai: Gold prices in the UAE climbed to a new all-time high on Thursday, crossing the Dh500 mark for the third day in a row as global uncertainty and interest-rate cut hopes pushed bullion higher.
By morning trade, 24K gold was priced at Dh509.25 per gram, while 22K gold reached Dh471.50. Prices have surged more than Dh80 per gram in just two months, from Dh466.75 for 24K in early October to current levels.
Analysts say the rally is being driven by rising US-China tensions, expectations of further US Federal Reserve rate cuts, and strong safe-haven demand.
Global spot gold earlier touched $4,227 an ounce, while silver gained over 3% amid tight market supply.
Fed Chair Jerome Powell hinted this week at another 25-basis-point rate cut, further boosting gold’s appeal. When rates fall, the opportunity cost of holding non-yielding assets like gold decreases, attracting investors seeking security during volatile times.
Adding to the momentum, traders are reacting to President Trump’s renewed trade war threats with China and continuing concerns over the US government shutdown.
Central banks’ sustained gold purchases are also supporting long-term prices.
For UAE residents, the price surge poses a dilemma. While jewellery buyers face higher costs, investors view the rally as confirmation of gold’s enduring value as a hedge against economic uncertainty.
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