On Tuesday, gold prices soared to a new all-time high for the second day in a row, with 24K nearing Dh500 per gram as markets opened.
According to the Dubai Jewellery Group, 24K gold was traded at Dh479.25 per gram on Tuesday morning, climbing from Dh475.25 per gram at Monday’s market close, marking a Dh4 per gram increase.
Likewise, 22K gold approached Dh450 per gram, increasing by Dh4.75 per gram to Dh443.75. Meanwhile, 21K and 18K gold also opened stronger at Dh425.5 and Dh364.5 per gram, respectively.
Stay informed with the latest updates. Follow KT on WhatsApp Channels.
Spot gold peaked at $4,3975 early in the morning, trading at $3,976 per ounce at 9am UAE time, as investors flocked to safe-haven assets amid US government shutdown concerns and anticipated interest rate cuts.
Ahmad Assiri, a research strategist at Pepperstone, noted that global markets faced new political risks, overshadowing economic data, much of which is unavailable due to the ongoing US government shutdown.
“In France, the abrupt resignation of the Prime Minister shortly after forming his government has revived fears of political instability and reduced prospects for policy continuity. In Japan, Sanae Takaichi’s victory as leader of the Liberal Democratic Party has raised expectations for more expansionary fiscal policies. The market reaction was swift; the Nikkei index jumped over 4 percent to new record highs above the 48,000 mark, driven by a concurrent weakening of the yen,” Assiri explained.
“Gold’s historic rise continued, with traders now eyeing the crucial $4,000 level. These high prices underscore gold’s increasing strategic importance as a core element in diversified portfolios, with both institutional and retail investors boosting their exposure, unlike previous periods dominated by central banks. The current demand for gold reflects growing market unease; equity valuations have soared to nearly 23 times earnings, prompting discussions of a ‘bubble’ at every research desk. If such worries escalate, gold remains the most reliable safe haven,” he added.
