UAE Gold Prices Hit Record Highs as Global Demand Surges

Dubai: Gold prices in the United Arab Emirates reached unprecedented levels on Tuesday, reflecting strong global demand and rising investor caution. The rate for 22-karat gold opened at Dh430 per gram, while 24-karat gold climbed to Dh464.25 per gram, both marking an increase of Dh4 from the previous day.

The surge comes as global gold prices breached $3,850 per ounce, with the metal reaching an all-time high of $3,865 per ounce on Tuesday. This marks the sixth consecutive week of gains, highlighting gold’s appeal as a safe-haven investment amid economic uncertainty.

In the UAE, the upward trend has been particularly sharp. Gold first reached record levels last Tuesday, when 24-karat was priced at Dh452.25 and 22-karat at Dh418.75 per gram. Within just one week, prices have risen by more than Dh12 per gram.

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The impact is mirrored in neighboring markets. In India, 24-karat gold surged to ₹11,831 per gram, while 22-karat reached ₹10,845 per gram. Regional demand remains robust as investors look to protect their wealth against global financial volatility.

Analysts point to several factors driving the rise. Concerns over a potential US government shutdown could delay critical economic data, including the upcoming jobs report. Any signs of weakness in the US labor market may encourage the Federal Reserve to reduce interest rates, which generally strengthens the appeal of gold and other non-yielding assets.

In the UAE, investors continue to view gold as a reliable store of value. Some are opting to sell and secure profits, while others remain cautious, anticipating further price gains. The combination of local demand and global uncertainty is fueling the current bullish trend.

As gold continues to hit record highs, it remains a key investment option for both individuals and institutions seeking security amid fluctuating markets.