Dubai gold price hits Dh420 as global rates break records
Investors flock to bullion amid trade fears and weak US dollar
DUBAI: Gold prices in Dubai surged to historic levels on Tuesday, echoing a global rally driven by investor anxiety and economic uncertainty.
The 24-carat variant touched Dh420 per gram, marking a nearly Dh20 gain in just 24 hours. Global rates also hit unprecedented highs, with spot gold briefly surpassing $3,485 per ounce.
In a dramatic escalation, gold prices in Dubai began climbing rapidly on Monday, continuing their upward momentum into Tuesday morning. The 24K gold rose by approximately Dh15 overnight, while 22K reached Dh388.75 per gram, gaining Dh13 in a single day. Prices for 21K and 18K gold stood at Dh372.75 and Dh319.50 respectively by Tuesday noon.
Global price spike
Globally, spot gold surged 4.74 per cent to $3,480.22 per ounce at 9.20AM UAE time, with earlier peaks breaching the $3,485 threshold. US gold futures also climbed to $3,502.40 per ounce. Analysts link the rally to ongoing economic jitters, including weakening of the US dollar and fresh friction in US-China trade relations.
US President Donald Trump’s recent criticism of Federal Reserve Chair Jerome Powell further unsettled investors. His call for urgent rate cuts and warnings of an impending economic slowdown caused traders to retreat from dollar-based assets, redirecting funds into gold as a safer store of value.
Geopolitical tensions fuel rally
The price surge coincides with geopolitical turbulence across several fronts. On Monday, China accused Washington of misusing tariffs, cautioning nations against favouring US economic deals that could undermine their own interests. Simultaneously, global stock markets, particularly across Asia, struggled under the weight of rapid sell-offs and investor risk aversion.
Market watchers have already raised their forecasts for gold to $3,500 per ounce. Some anticipate that if trade tensions persist and rate cut expectations intensify, the metal could reach $4,000 before year-end.
Dubai gold retailers and jewellers also report robust investor interest and expect prices to remain on the higher side for the foreseeable future. Seasonal demand, especially with wedding purchases on the horizon, could further support the upward trend.
In other markets, spot silver dipped slightly by 0.4 per cent to $32.57 an ounce. Platinum gained 0.3 per cent to $964.78, while palladium rose 1.3 per cent to $939.50.
Copper, too, extended gains amid the dollar’s weakness, with futures on the London Metal Exchange climbing 0.7 per cent to $9,289.60 a ton.
As uncertainty dominates the global economic landscape, gold continues to glitter brighter than ever in investor portfolios.