On Monday afternoon, gold prices in Dubai surged to yet another record high, coming dangerously close to the symbolic Dh450 per gram mark for 24K. This rally has left jewelry buyers in the UAE divided, unsure whether to buy now or wait, as they grapple with the uncertainty of whether the price will continue to rise or reach its peak.
According to the Dubai Jewellery Group, 24K gold climbed by Dh4.75, reaching Dh448.75 per gram. The 22K category followed suit, priced at Dh415.5, an increase of Dh4.25 from the previous session. Meanwhile, 21K gold was trading at Dh398.5 per gram, approaching the Dh400 level, while 18K stood at Dh341.5. Analysts suggest that if the current momentum holds, 24K could cross the Dh450 per gram milestone as early as today or later this week.
What’s Driving the Surge?
The rally is strongly linked to shifts in global markets following the U.S. Federal Reserve’s 25 basis point rate cut in September 2025—its first since early this year. Rania Gule, a senior market analyst for MENA at xs.com, stated, “Although widely expected, the Fed’s decision had a significant impact on global markets, especially against the backdrop of a weakening U.S. labor market and slowing job growth.”
Gule added that this move reflects a pivotal moment in the monetary policy cycle, as the Fed balances persistent inflation risks with the threat of recession. In such an environment, gold has maintained its status as a key hedge for investors.
Geopolitical Tensions Add Fuel
Beyond monetary policy, escalating geopolitical tensions are further driving the demand for gold. Gule explained, “Russia’s intensified drone and missile attacks, along with growing unrest in Eastern Europe and the Middle East, have reinforced gold’s traditional role as a safe-haven asset.” She noted that historically, a combination of heightened geopolitical risks and looser monetary policies has sustained strong demand for gold, a trend likely to continue in the short to medium term.
Globally, spot gold was trading at $3,723.98 per ounce, up 1.03% as of 4 PM UAE time, further reflecting the metal’s growing strength in uncertain markets.
