Dubai’s gold market witnessed unprecedented milestones on Tuesday as prices surged to record-breaking heights for the second consecutive trading session. The precious metal’s remarkable rally saw 21K gold surpass Dh500 per gram for the first time in history, joining 24K and 22K variants that had previously breached this psychological barrier.
Market data revealed 24K gold trading at an all-time high of Dh566 per gram, representing an increase of Dh3.75, while 22K reached Dh524.0 per gram with a gain of Dh3.25. The broader spectrum showed 18K and 14K gold trading at Dh430.75 and Dh336 per gram respectively, completing a comprehensive market upswing.
According to Ahmad Assiri, Research Strategist at Pepperstone, this historic rally stems from escalating geopolitical tensions and renewed trade threats. Recent statements by the US President regarding potential tariffs of 10-25% on European goods have reignited global trade concerns within a broader geopolitical context that transcends traditional trade balance issues.
European responses, particularly from France, have included discussions about activating the EU’s Anti-Coercion Instrument and preparing retaliatory tariffs worth approximately €93 billion on US goods. This escalating tension has positioned precious metals as primary beneficiaries of market uncertainty, with gold specifically maintaining its upward trajectory around the $4,700 per ounce threshold.
Assiri identified three key drivers supporting gold’s rally: increased hedging demand, declining risk appetite in equity markets, and favorable macroeconomic factors including monetary policy expectations and a weakening US dollar. Globally, spot gold reached $4,714.34 per ounce at 10 AM UAE time, registering a 0.77% increase.
The analyst projected that $5,000 per ounce represents a logical medium-term target rather than optimistic speculation, noting this price point remains approximately 7% above current levels. He emphasized that precious metals will likely maintain their defensive appeal until clearer negotiation pathways emerge, with gold positioned as the most prominent near-term beneficiary of ongoing political and economic uncertainty.