UAE Gold Prices Hit All-Time High as Global Uncertainty and Rate-Cut Expectations Drive Surge

UAE gold prices all-time high trends continue as the Dubai jewellery market records its third straight day of 24K gold trading above Dh500 per gram. On Thursday morning, 24K gold stood at Dh509.25 per gram, while 22K traded at Dh471.50 — marking an increase of over Dh80 per gram since early October.

Analysts attribute the surge to a mix of geopolitical and economic factors. Intensified US-China trade tensions, persistent global growth concerns, and expectations of more Federal Reserve rate cuts are prompting investors to move money into safe-haven assets like gold.

Globally, spot gold prices breached the $4,227 per ounce level, gaining 5% in one week. Silver prices also soared 3%, driven by tight supply conditions and industrial demand. Market sentiment is further fueled by the “debasement trade” — the shift from sovereign debt and currencies to hard assets amid fears of fiscal deficits and inflation.

Why rate cuts matter:
When interest rates fall, holding gold becomes more attractive as the opportunity cost of non-yielding assets decreases. Traders now expect the Federal Reserve to implement at least one more rate cut before year-end, with a 97% chance of a 25 basis-point reduction this month.

Impact on UAE buyers:
For UAE residents, the timing is challenging. The steep climb in prices since September has made jewellery purchases more expensive. However, long-term investors are viewing the rally as proof of gold’s enduring value as a hedge against market volatility and inflation.

As bullion continues its record-breaking ascent, local jewellers expect sustained investor demand, although retail buyers may adopt a wait-and-see approach.