Dubai’s gold market witnessed a significant surge at the week’s opening, with 24K gold climbing to Dh603.75 per gram as the US dollar exhibited weakness. This resurgence marks another breach of the psychologically important Dh600 threshold, a level that has been tested multiple times in recent months before profit-taking activities drove prices downward.
The broader spectrum of gold varieties experienced corresponding gains, with 22K, 21K, 18K, and 14K gold reaching Dh559.25, Dh536.25, Dh459.5, and Dh358.5 per gram respectively. This upward movement mirrored global trends where spot gold exceeded $5,000 per ounce, registering a 1.25 percent increase at Monday’s market opening.
Market analysts point to sustained volatility in gold trading, with prices maintaining proximity to levels observed in recent sessions. Joseph Dahrieh, Managing Director at Tickmill, noted that while markets might gradually stabilize following previous sell-offs, they remain highly responsive to new economic data and geopolitical developments. “The latter could fuel demand for safe-haven assets,” Dahrieh emphasized.
Geopolitical tensions continue to play a crucial role in gold’s performance. Ongoing US-Iran negotiations in the Middle East present both diplomatic opportunities and risks, with tense rhetoric and military incidents maintaining market caution. Simultaneously, continued hostilities in Eastern Europe despite peace talks contribute to a persistent geopolitical risk premium that supports gold prices.
Institutional investment flows have emerged as another critical support pillar. Gold-backed ETFs recorded substantial inflows of 44.8 tonnes in the week ending January 30, representing the strongest weekly influx since mid-October. Asian markets led this demand, effectively counterbalancing modest European outflows and reinforcing the metal’s broader bullish structure.
The current price environment has already impacted consumer behavior, with UAE gold jewellery demand declining approximately 15% in 2025 as buyers increasingly turn to diamond alternatives amid record-high gold prices.