Dubai’s gold market witnessed an unprecedented rally as prices soared to record-breaking levels, with 24K gold reaching Dh635.5 per gram on Wednesday evening. This represents a remarkable increase of Dh115.5 per gram within the first month of 2026 alone, significantly outpacing the entire year’s performance of 2025 when prices closed at Dh520 per gram on December 31.
The precious metal’s surge extended across all variants, with 22K, 21K, 18K, and 14K gold trading at Dh588.5, Dh564.25, Dh483.5, and Dh377.25 per gram respectively. The global benchmark spot gold surpassed the psychological $5,300 milestone before settling at $5,288.26 per ounce at 8pm UAE time.
Financial analysts attribute this historic rally to multiple converging factors. Alex Kuptsikevich, Chief Market Analyst at FxPro, noted that the collapse of the USD index enabled gold to break through the $5,300 barrier for the first time in history. “Precious metals act as politically neutral assets,” Kuptsikevich explained. “They respond to White House policy but maintain independence from the direct influences that affect stocks, bonds, and the US dollar.”
The current market dynamics reveal a significant shift in investment patterns. According to experts, gold is benefiting from dual capital movements: flight from US assets and simultaneous outflows from the cryptocurrency market. This contradicts earlier expectations that cryptocurrency would thrive under potential pro-crypto policies, instead demonstrating gold’s enduring appeal as a politically independent store of value.
Vijay Valecha, Chief Investment Officer at Century Financial, emphasized that sustained central bank purchasing, combined with increasing investor preference for non-dollar assets, continues to drive strong underlying demand. Despite potential short-term corrections due to overbought conditions, the fundamental outlook remains bullish amid persistent geopolitical tensions, trade conflicts between the US and NATO allies with Canada, stalled Russia-Ukraine peace negotiations, and ongoing tariff uncertainties.
Adding to the complex economic backdrop, US consumer confidence has plummeted to multi-year lows, further enhancing gold’s traditional role as a hedge against economic volatility, bond market fluctuations, and inflationary pressures. This convergence of factors has created ideal conditions for gold’s spectacular performance, establishing it as the preferred safe-haven asset during current global uncertainties.