Gold prices surged by Dh4.5 per gram, reaching a new peak in Dubai on Wednesday, as spot gold surpassed $3,560 per gram.
By Wednesday evening, 24K gold was priced at Dh428.75 per gram, an increase from Dh424.25 per gram at Tuesday’s market close.
22K gold edged nearer to Dh400 per gram, with its price climbing to Dh396.75 per gram. Meanwhile, 21K and 18K gold opened stronger at Dh380.25 and Dh326 per gram, respectively.
Spot gold was trading at $3,562.59 per ounce on Wednesday evening.
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Analysts predict the gold price will continue its upward trajectory due to a weaker US job market prompting the Federal Reserve to cut interest rates to boost employment. This, along with other factors such as central bank purchases and global geopolitical tensions, is expected to bolster gold.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that precious metals reached a new record, extending a strong rally in 2025 that has seen the metal rise over 34% year-to-date.
“This rise is fueled by a combination of expected rate cuts and concerns about the independence of the US Federal Reserve, amid a broader global fragmentation that is reshaping safe-haven flows. Markets now foresee an almost certain rate cut in September, with possible acceleration later, lowering front-end yields and reducing the opportunity cost of holding gold,” Hansen explained.
Additionally, he mentioned that governance concerns, such as the process of appointing a new Fed chair and central-bank independence issues, have added a premium to gold as a hedge against political interference.
“Geopolitical tensions and varying reserve diversification by central banks and sovereign wealth funds have further driven demand for gold, while diminishing appeal of traditional bonds has steered investors toward tangible assets like gold,” he added.
Vijay Valecha, chief investment officer of Century Financial, stated that the rally was fueled by heightened expectations of US interest-rate cuts and traders seeking safety following a selloff in equity and bond markets.
“Uncertainty regarding whether US President Donald Trump has legitimate grounds to dismiss the Fed governor has further supported the gold rally… An important US jobs report expected this Friday is anticipated to show weakening labor market signs, reinforcing the case for rate cuts. These factors are likely to maintain the bullish momentum. Moreover, falling property prices in China have limited domestic investors’ options for preserving wealth, thereby enhancing gold’s appeal,” he mentioned.
