Dubai’s gold market has entered unprecedented territory as prices surged dramatically in the opening weeks of 2026, with the precious metal reaching record-breaking valuations. On Tuesday evening, 24-karat gold achieved a remarkable Dh571.25 per gram, representing an extraordinary increase of over Dh50 per gram since the beginning of the year when it closed at approximately Dh520 per gram.
The market witnessed a significant milestone as 21-karat gold surpassed the Dh500 per gram threshold, joining 24-karat and 22-karat variants that had previously breached this psychological barrier. Current market valuations show 22-karat trading at Dh529.0, 21-karat at Dh507.25, 18-karat at Dh434.75, and 14-karat at Dh339.25 per gram.
This remarkable rally extends beyond regional markets, with global gold prices reaching $4,727.51 per ounce, marking a 1.05 percent increase at 7:30 PM UAE time. Financial experts attribute this surge to multiple converging factors creating perfect conditions for gold’s ascent.
According to Vijay Valecha, Chief Investment Officer at Century Financial, the price escalation stems from three primary drivers: “The Greenland crisis has triggered substantial safe-haven demand following Trump’s threats of EU tariffs. Concurrently, criminal investigations into Federal Reserve Chairman Jerome Powell have undermined confidence in the US dollar, traditionally supporting commodity prices. Finally, persistent accumulation by central banks continues providing institutional support for precious metals.”
Market analysts suggest further appreciation appears inevitable. Ahmad Assiri, Research Strategist at Pepperstone, indicated that $5,000 per ounce represents a logical medium-term target rather than optimistic speculation, representing approximately 7 percent growth from current levels. He emphasized that precious metals currently represent the clearest expression of defensive market sentiment until negotiation pathways become more transparent.
The broader market perspective suggests this trend may continue through an extended phase of political volatility, with gold positioned as the primary beneficiary of escalating global uncertainties.