Dubai Gold Prices Near Dh500 per Gram Again as Global Rally Lifts Prices

Dubai gold prices climbed close to the Dh500 per gram once again on Tuesday. Hence, it reflects renewed momentum in the global bullion market. However, the surge comes after a period of mild correction over recent weeks. In addition, softer economic data from the United States and expectations of interest rate cuts largely influenced it by the US Federal Reserve.

According to data released by the Dubai Jewellery Group, 24K gold opened at Dh499.25. Thus, it marks an impressive Dh13.5 rise within 24 hours. Moreover, other variants also saw upward movement, with 22K at Dh462.75, 21K at Dh443.25, and 18K trading at Dh379.75 per gram.

Spot gold also traded at $4,138.23 per ounce on the international front, which reflects a 0.59 per cent increase. Moreover, the yellow metal also gained more than 3 per cent late on Monday. Hence, it shows a strong investor sentiment and safe-haven demand amid the global market volatility. 

Global Drivers Behind the Rally to Dubai gold prices

Analysts attribute the latest gold rally to a combination of softer US economic indicators, central bank buying, and declining investor appetite for riskier assets such as tech and AI stocks.

Dilin Wu, Research Strategist at Pepperstone, “Central bank purchases, especially by the People’s Bank of China (PBoC), continue to lend structural support to gold. However, changing market expectations about a December Fed rate cut have restricted further upside in the short term.”

Wu added that gold has been trading in a narrow range of $3,930–$4,030 per ounce over the past week, with bulls holding a slight advantage. He said, “If bull can sustain momentum above $4,100 level, it could open the door for further gains. However, a drop below $4,000 might push prices toward the $3,880–$3,900 support zone.”

Safe Haven Demand Boosts Gold’s Appeal

The surge in the UAE gold prices has been a rise in safe-haven demand is one of the major catalysts. In addition,  investors sought refuge in gold to hedge against uncertainty as the global tech and AI-related equities experienced notable corrections. 

Recently, the Nasdaq index recorded its steepest weekly fall in 7 months. Hence, it highlights the growing risk aversion among global investors. However, this shift prompted funds and institutional investors to increase allocations to defensive assets such as gold. 

Central Banks Drive Long-Term Stability

Besides the short-term safe-haven demand, central bank activity has played an important role in maintaining the long-term support for gold prices. Moreover, the People’s Bank of China has expanded its gold reserves for the 12th consecutive month. Hence, it reflects a sustained strategy of diversification and de-dollarisation. 

Other countries, like Poland and Turkey, have also increased gold holdings. Hence, it reflects a broader global trend of reducing dependence on the US dollar. Moreover, this steady institutional buying adds a robust structural foundation for continued gold demand.

Outlook: Dh500 Within Reach

The gold prices in Dubai are currently hovering near Dh 499. However, experts believe that the Dh500-per-gram milestone to be tested soon if global sentiment remains positive.  Moreover, a break above the $4,100 resistance in the global market could further push Dubai gold prices higher. 

This trend offers opportunities and alertness for the UAE residents. Strong gold prices could benefit investors who bought it early. However, buyers who are looking to purchase gold might prefer monitoring short-term fluctuation before making the large acquisition. 

As of now, gold is a resilient asset for institution and retail investors. However, the steady climb of the metal climb toward Dh500 per gram highlights its enduring appeal as a safe-haven and long-term store of value in a volatile global economy.

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