Dubai gold prices hit historic high as 24K crosses Dh400 per gram
22K gold rate rises Dh14 in just over a day
DUBAI: The Dubai gold market is experiencing an unprecedented surge, with 24K gold crossing the symbolic Dh400 mark per gram for the first time ever.
This milestone, once forecast for late 2025, has materialised months ahead of schedule, sending ripples through retail and investment circles alike.
On Thursday, 24K was listed at Dh402.75, while 22K climbed to Dh372.75. The 21K and 18K variants reached Dh357.5 and Dh306.5 per gram, respectively.
The climb has been rapid and steep. Just over a day ago, 22K gold was Dh14 cheaper. Compared to the year's lowest price of Dh223.25 per gram for 22K gold recorded on February 14, the current levels reflect a remarkable rise of nearly Dh150 per gram.
Global impact
This local surge mirrors global bullion trends, where gold prices have breached $3,340 per ounce. Earlier today, spot gold reached as high as $3,350 before settling around $3,337 – still an impressive $115 leap in 24 hours. Analysts trace this upward momentum to persistent demand from central banks and institutional buyers amid intensifying trade uncertainties and a weakening US dollar.
Saudi markets show a similar trend, with 22K and 24K gold priced at SR378 and SR409 per gram, respectively. This wider regional upswing highlights a collective investor shift toward perceived safe-haven assets.
Market drivers
At the core of the rally is the growing unease over global tariffs, particularly those imposed by the United States. With President Trump issuing a 90-day grace period to all nations except China, the uncertainty surrounding future trade dynamics has amplified. Investors worldwide are seeking refuge in gold, whose neutrality and global acceptance make it a trusted hedge during volatile times.
The Federal Reserve's rate cuts, soaring sovereign debt levels, and increasing trade restrictions have further boosted gold’s allure. Saxo Bank highlighted that the yellow metal's appeal lies in its independence from political constraints and its immunity to credit downgrades, unlike currencies or government bonds.
Investor reactions
Amid this bullish run, speculative behaviour is rife. Market participants are refraining from offering future price projections as intra-day swings are now measured in tens of dollars. The rapid ascent has led to cautious anticipation, with many waiting for a profit-booking phase that is yet to show signs of beginning.
Simultaneously, shifts are seen in the global currency landscape. Hedge funds and asset managers have redirected focus toward the Japanese yen, another defensive asset, as concerns over US-China tensions and broader economic risks escalate. Leveraged funds are currently holding their most bullish yen positions since 2021.
As bullion resets benchmarks by the day, Dubai’s gold trade continues to mirror the feverish pace of international markets, with no sign yet of cooling off.