Gold prices in Dubai climbed to another record on Monday afternoon, with 24K edging close to the symbolic Dh450-per-gram threshold.
The surge has left jewellery shoppers divided — some rushing to buy before prices rise further, while others wait to see if the rally will peak.
Figures from the Dubai Jewellery Group showed 24K gold rose Dh4.75 to Dh448.75 per gram. Prices for 22K stood at Dh415.5, up Dh4.25; 21K reached Dh398.5, just shy of Dh400; and 18K hit Dh341.5.
Analysts said the momentum could push 24K above Dh450 this week, a milestone for the UAE market.
Fed Rate Cut Sparks Rally
The spike follows the US Federal Reserve’s September 2025 rate cut — its first of the year — by 25 basis points.
“Even though the move was expected, it strongly influenced markets amid weakening US job growth and a softer labour market,” said Rania Gule, senior MENA analyst at xs.com.
She added the Fed now faces a delicate balance between persistent inflation and looming recession risks, which has reinforced gold’s status as a hedge.
Geopolitics Drive Safe-Haven Demand
Alongside monetary policy, rising global tensions are fuelling demand.
“Russia’s stepped-up drone and missile strikes, along with unrest in Eastern Europe and the Middle East, have boosted gold’s appeal as a safe-haven asset,” Gule explained.
With spot gold trading at $3,723.98 an ounce, up 1.03% as of 4 PM UAE time, analysts believe the trend is set to continue in the near term.
