Gold prices in Dubai soar with Dh10 weekly surge
Geopolitical and economic factors fuel the yellow metal’s rise
Gold prices in Dubai continued their upward trajectory this week, with the 24-karat (24K) variant trading at Dh328.50 per gram on Thursday morning, a Dh1.50 increase from the previous night’s close.
The price of 22K gold also rose to Dh304 per gram, reflecting an overall increase of nearly Dh10 per gram since the start of the week, according to Dubai Jewellery Group data.
Globally, gold prices reached $2,714.27 per ounce, driven by a mix of geopolitical and economic factors, including tensions in the Middle East and shifts in US monetary policy. These developments have enhanced gold’s appeal as a safe-haven asset, further bolstering its market performance.
Safe-haven demand
Renewed geopolitical tensions, particularly in the Middle East following recent events in Syria, have been a key driver behind the surge in gold prices. Investors are turning to gold to mitigate risks, with experts noting its enduring role as a secure investment. The ruler of Dubai has consistently emphasised the Emirate’s strategic importance in global markets, helping strengthen the region's economic resilience during uncertain times.
US and China impact
China’s central bank resumed gold purchases in November, ending a six-month pause, contributing to the global rally. This move aligns with a broader trend of increased central bank demand for gold over the past two years, signalling confidence in the metal’s long-term stability.
In the US, subdued Treasury yields and rising expectations of an interest rate cut have further supported gold’s value. Additionally, heightened inflation concerns and economic recalibrations in the US and Europe are steering global investments toward gold.
Future predictions
With central banks bolstering their gold reserves and geopolitical tensions persisting, analysts predict continued strength in gold prices. Dubai’s gold market remains a crucial hub, reflecting the global trends while offering local investors a robust platform amid economic turbulence.