Dubai’s gold market witnessed unprecedented gains on Wednesday as prices surged dramatically at market opening, setting a third consecutive record high. The precious metal’s remarkable rally saw 24K gold escalate by Dh15.75 to reach Dh586.25 per gram, bringing it within striking distance of the psychological Dh600 barrier.
The comprehensive price surge affected all variants: 22K gold climbed to Dh542.75 per gram, 21K advanced to Dh520.5, 18K reached Dh446.25, while 14K gold settled at Dh348.0 per gram. This sustained upward trajectory reflects deepening global economic anxieties and geopolitical uncertainties.
International markets mirrored Dubai’s bullish trend, with gold breaching the $4,800 milestone for the first time in history. At 9:15 AM UAE time, spot gold traded at $4,869.7 per ounce, registering a substantial 2.28 percent increase. This global surge coincides with escalating tensions between the United States and European Union regarding Greenland, adding fresh momentum to gold’s safe-haven appeal.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, contextualized the rally: ‘The renewed US-Europe standoff over Greenland has acted as a fresh catalyst for gold and silver demand, reinforcing an already powerful hard-asset narrative. Importantly, this rally predates the current dispute and shows no signs of abating. The Greenland episode has effectively poured fresh fuel on a rally that has been building for months, driven by an increasingly uncomfortable macro and geopolitical backdrop.’
Hansen further noted the concerning performance of traditional safe havens, observing that the dollar, yen, and US Treasuries have all struggled to provide their customary stability as long-end yields rise due to credibility concerns rather than growth optimism.
Market analysts suggest that if the current momentum persists amid ongoing global uncertainties, Dubai’s gold prices could realistically approach the Dh600 per gram threshold in the near term. Some international forecasts even project gold potentially reaching $5,000 per ounce during the first quarter, underscoring the metal’s strengthened position in contemporary portfolio strategies.