Dubai witnessed a sharp gold price surge this month, reshaping consumer demand and investor behavior across the Emirates. The increase reflects global market trends and leaves buyers in the UAE preparing for further jumps.
Over the past four weeks, gold rose by Dh45, representing nearly a 10 percent monthly climb. On Tuesday morning, prices reached fresh records, extending an already rapid rally. The rate for 22-karat touched Dh418.50 per gram, while 24-karat moved higher to Dh451.75. Both values increased by Dh3 from the previous day.
Analysts noted that the gold price surge demonstrates the impact of international uncertainties and shifting investor preferences. Stronger demand for safe-haven assets has fueled continued buying pressure. Furthermore, the rally reflects global trends in currency fluctuations and economic concerns.
Indian markets also registered higher rates, showing a consistent pattern across regions. The 24-carat rate reached ₹11,307 per gram, while 22-carat stood at ₹10,365. The alignment highlights the broad nature of the rally, as prices climb across both Gulf and South Asian markets.
Local retailers in Dubai reported cautious consumer behavior as prices climbed. Shoppers displayed hesitation in making large purchases, while investors saw the surge as a chance to secure holdings. Consequently, the sharp rise has created a divide between jewelry buyers and financial investors.
Industry experts believe further gains remain possible in the short term. Inflation risks, combined with geopolitical developments, could drive additional support for precious metals. Central bank activity in global markets has also played a role, reinforcing the attraction of gold.
Moreover, traders expect seasonal demand to add pressure, especially as festival periods approach in South Asia and the Gulf. As a result, the gold price surge could influence purchasing patterns for weddings and cultural events.
Market watchers anticipate volatility as investors react to shifting signals from global economies. However, most agree that gold will remain an attractive hedge. For UAE residents, the record-setting levels highlight both opportunity and challenge, depending on individual goals.
The sustained gold price surge demonstrates how global conditions directly affect regional markets. For many, the coming weeks will determine whether momentum continues or stabilizes.
