Gold prices in UAE have hit a new record high, with 24K gold reaching Dh523 per gram and 22K trading at Dh484.25, reflecting an almost 5% increase since the start of the week.
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Gold prices in UAE have hit a new record high, with 24K gold reaching Dh523 per gram and 22K trading at Dh484.25, reflecting an almost 5% increase since the start of the week.
Gold prices in UAE have hit a new record high, with 24K gold reaching Dh523 per gram and 22K trading at Dh484.25, reflecting an almost 5% increase since the start of the week. The surge comes as investors flock to safe-haven assets amid geopolitical tensions and growing expectations that the US Federal Reserve will continue its cycle of interest rate cuts.
This year’s Diwali season is proving to be the costliest for gold buyers across the UAE. Retailers in Dubai have observed changing buying patterns, as shoppers choose lighter jewelry, smaller coins, and minimalist designs instead of traditional heavy sets. While some buyers have temporarily postponed major purchases, others are investing in smaller quantities to preserve the festive tradition without stretching their budgets.
Analysts attribute the rally to a combination of US–China trade tensions, continued US government gridlock, and heightened expectations for another Federal Reserve rate cut. Spot gold prices crossed $4,300 per ounce this week, while silver prices rose more than 3% on tightening global supply. Lower interest rates reduce the opportunity cost of holding gold, making it increasingly attractive compared to low-yielding bonds and currencies.
Global central banks have continued their steady gold accumulation, adding resilience to the metal’s long-term demand. HSBC recently revised its gold price forecasts for 2025 and 2026 upward, citing persistent safe-haven demand and strong official-sector purchases. The combination of falling real yields, currency debasement fears, and regional uncertainties has created the perfect environment for sustained price strength.
In Dubai’s bustling Deira Gold Souq, crowds continue to fill jewelry shops despite record prices, especially in the lead-up to Diwali. Retailers report strong demand for giftable items, everyday ornaments, and small bars amid high investment sentiment.
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