In Dubai, gold prices have surged past Dh450 per gram, with the precious metal consistently breaking new records.
According to the Dubai Jewellery Group, 24K gold peaked at Dh451.75 per gram before slightly declining to Dh451.0 per gram on Tuesday morning. Similarly, 22K, 21K, and 18K gold also reached new highs at Dh418.5, Dh401, and Dh344 per gram, respectively.
Significantly, the 21K variant achieved Dh400 per gram for the first time in Dubai.
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Spot gold was trading at $3,749.32 per ounce, marking a 0.24% increase.
Ahmad Assiri, a research strategist at Pepperstone, noted that gold is the top performer, trading above $3,750 after hitting record highs earlier.
“In today’s climate, gold is difficult for investors to overlook, driven by a weaker dollar, central bank demand, and its role as a hedge. Recent pullbacks have been quickly absorbed by both speculative and institutional investors, highlighting strong conviction,” said Assiri.
Linh Tran, a market analyst at xs.com, stated that gold benefits from several supportive factors, such as macroeconomic trends, monetary policy, geopolitical tensions, and central bank reserve strategies.
“Having set records throughout the year, gold prices reached a new all-time high around $3,760 per ounce. This milestone shows increasing investor confidence in gold as a safe-haven asset and long-term value store amid uncertainty,” added Tran.
Economically, the Federal Reserve’s September 2025 decision to cut interest rates by 25 basis points suggests the end of a long tightening cycle. However, Chair Jerome Powell cautioned that future policy would depend on data, particularly regarding inflation and labor conditions.
A major long-term factor is central bank demand. In the first half of 2025, central banks purchased a net 410 tonnes of gold (244 tonnes in Q1 and 166 tonnes in Q2), continuing a trend of record purchases since 2022.
“Geopolitical tensions further enhance gold’s appeal. Rising tensions in the Middle East, notably in Gaza, along with US.-Arab diplomatic efforts, and the growing standoff between Russia and NATO due to airspace violations, contribute to an unstable global investment environment, boosting demand for gold as a safe-haven,” added Tran.
