Gold prices in Dubai have soared to unprecedented levels for the third consecutive day this week, with 24K gold reaching a new all-time high of Dh503.5 per gram on Wednesday. This surpasses the previous record of Dh502.75 set on Tuesday, according to data from the Dubai Jewellery Group. Other variants, including 22K, 21K, and 18K, also achieved record highs, trading at Dh466.25, Dh447.0, and Dh383.25 per gram, respectively. Globally, spot gold was priced at $4,188 per ounce at 9:10 am UAE time. Market analysts attribute this surge to a combination of safe-haven demand, escalating US-China trade tensions, and expectations of Federal Reserve rate cuts. Frank Walbaum, a market analyst at Naga, noted that gold briefly surpassed $4,190 per ounce on Tuesday before a slight retreat as investors locked in profits. He highlighted that geopolitical risks, including US President Donald Trump’s tariff threats and Beijing’s retaliatory measures, have intensified market uncertainty. Additionally, the ongoing US government shutdown has further weighed on economic activity, bolstering gold’s appeal. Walbaum also mentioned that markets are anticipating 25-basis-point rate cuts in October and December, supported by Fed officials’ concerns over labour market risks. While tensions in Eastern Europe remain a factor, progress in the Middle East could potentially temper gold demand. This sustained rally underscores gold’s enduring role as a hedge against global economic and geopolitical instability.
Gold prices in Dubai: Third record high in three days this week at Dh503 per gram
