On Monday afternoon, gold prices in Dubai reached unprecedented heights, increasing by nearly Dh5 per gram. The 22K gold price surpassed Dh415.5 per gram, while 24K gold neared the significant Dh450 mark.
Data from the Dubai Jewellery Group shows that 24K gold increased by Dh4.75 to Dh448.75 per gram. At the same time, 22K gold was priced at Dh415.5, a rise of Dh4.25 from the last session. Similarly, 21K gold approached Dh400, trading at Dh398.5 per gram, and 18K stood at Dh341.5.
This price hike poses a dilemma for UAE gold jewellery buyers: should they buy now expecting further rises, or sell in case this rally has peaked? Analysts predict that if uncertainty persists, 24K gold might hit Dh450 per gram soon. Globally, spot gold was trading at $3,723.98 per ounce, up 1.03% as of 4 PM UAE time.
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Rania Gule, a senior market analyst for MENA at xs.com, linked the record-breaking surge to the US Federal Reserve’s recent 25 basis point rate cut in September, the first since early 2025.
“Despite being expected, the Fed’s decision has notably impacted global markets, especially given the weakening US labor market and slowing job growth,” Gule stated. “In my opinion, this signifies a crucial point in the monetary policy cycle, with the Fed balancing the risks of ongoing inflation against a potential recession marked by job losses. In such uncertain times, gold remains a crucial hedge.”
Gule also highlighted that rising geopolitical tensions are significantly boosting gold prices.
“Russia’s increased drone and missile strikes, along with growing unrest in Eastern Europe and the Middle East, have bolstered gold’s traditional role as a safe-haven asset,” she explained. “Historically, increased geopolitical risks have driven gold demand, especially when coupled with relaxed monetary policies. This is likely to be a strong support factor in the short to medium term, keeping prices near historic highs.”
