Dubai’s gold market witnessed unprecedented price surges on Monday morning as 24-karat gold reached a historic high of Dh550.25 per gram, according to data released by the Dubai Jewellery Group. The remarkable rally saw 24K gold climbing Dh7 per gram while 22K gold simultaneously increased by Dh6.5 to reach Dh509.5 per gram.
The price escalation extended across all variants, with 21K gold rising to Dh488.75, 18K to Dh418.75, and 14K to Dh326.75 per gram. This domestic surge mirrored global trends where spot gold breached the psychological barrier of $4,600 per ounce for the first time in history, trading at $4,568.13 with a 1.31 percent increase at 9am UAE time.
Multiple geopolitical and economic factors are driving this bullion boom. Market analysts attribute the surge to heightened safe-haven demand amid escalating tensions between the US and Iran, with President Donald Trump threatening military action in response to protests within the Persian nation. Simultaneously, Federal Reserve Chairman Jerome Powell’s revelation that he faces federal criminal investigation regarding the central bank’s $2.5 billion headquarters renovation has created additional market uncertainty.
Powell characterized the investigation as a governmental ‘pretext’ designed to pressure the Federal Reserve into implementing rate cuts. These combined factors have intensified investor anxiety, reinforcing gold’s status as a preferred asset during periods of economic instability and geopolitical turmoil.