Dubai’s gold market surged to unprecedented levels on Monday morning as escalating geopolitical tensions triggered a massive flight to safe-haven assets. The precious metal recorded a dramatic increase of Dh8.25 per gram, pushing 24K gold to Dh562 while 22K gold reached Dh520.25 per gram according to Dubai Jewellery Group data.
The remarkable rally stems from multiple international crises simultaneously unfolding. Intensifying protests across Iran and mounting transatlantic tensions between the United States and European Union over Greenland have created perfect conditions for gold’s ascent. The situation intensified when US President Donald Trump threatened additional tariffs against the EU regarding control of the Arctic territory.
Global markets mirrored Dubai’s surge with gold reaching $4,671.72 per ounce, representing a 1.64 percent increase at 9:25 AM UAE time. Silver similarly climbed to $94 per ounce before settling at $93.19. All gold variants in Dubai traded at record levels with 21K at Dh499.0, 18K at Dh427.75, and 14K at Dh333.5 per gram.
Vijay Valecha, Chief Investment Officer at Century Financial, confirmed the bullish fundamentals: ‘As geopolitical risks multiply, investors traditionally seek refuge in safe-haven assets like gold. The White House’s recent executive order protecting US rare earth supplies has further contributed to this momentum.’ Valecha also noted lingering concerns about the Federal Reserve’s independence after Trump’s threats against the Fed Chair, which drew support from central bankers worldwide.
Technically, Valecha identified potential resistance around $4,685 on the ascending trendline, suggesting the rally might face temporary hurdles at that level. The combination of political uncertainty, trade tensions, and monetary policy concerns has created ideal conditions for sustained gold appreciation.