The UAE gold prices are climbing rapidly, as it is coming closer to the symbolic Dh500 per-gram mark. The global investors flock to safe-haven assets amid deepening political and economic instability throughout the world is one of the reasons behind this surge.
As of Thursday morning, the Dubai gold price surged by Dh5 in a single day. So, the 24-karat gold is trading at Dh480 per gram, and the preferred 22-karat variety at Dh444 per gram. Moreover, retailers indicate the rally is showing no sign of slowing. Hence, shoppers are responding by buying smarter and choosing smaller jewellery and gold coins to hedge against future price jumps.
Global Rally Drives Local Surge in the UAE gold prices
The sharp rise in the UAE gold prices is a reflection of a global rally that saw gold futures briefly cross $4,000 an ounce for the first time on Tuesday. Moreover, the metal has gained around 50 percent since January, as economic shocks and geopolitical tensions have pushed investors away from riskier assets.
The ongoing US government shutdown, which is now stretching into its second week, has left thousands of federal workers unpaid. So, it has delayed the important economic reports. Moreover, markets have been disturbed by the fear of prolonged instability due to President Donald Trump’s renewed trade tariffs on major economies.
The fiscal turmoil of France has added to the global anxiety, with growing calls for President Emmanuel Macron’s resignation. Moreover, the leadership changes in Japan have further intensified the rush toward gold.
Analysts See Higher Highs Ahead
Big financial institutions remain bullish. It is because Goldman Sachs recently raised the gold forecast to $4,900 an ounce by December 2026 due to the strong central bank buying and sustained investor demand as the key drivers. On the other hand, one Dubai-based commodities trader said,” Investors are following the money and right now, that gold.”
UAE Shoppers Adjust Buying Habits
Jewellers at Dubai’s traditional Deira Gold Souq and Sharjah markets said that the surge has not stopped football, but changed the customer behavior, a long-time retailer said, “People say they will wait for the price to fall. But every time they wait, the gold price climbs again.” So, the UAE shoppers are requested to adapt to a new normal of a higher gold price, as there is no sign of the rally slowing.
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