Gold and silver prices in Dubai opened the week at fresh record highs on Monday, extending a rally driven by rising geopolitical tensions and renewed demand for safe-haven assets.
Data from the Dubai Jewellery Group showed 24-carat gold climbing Dh8.25 per gram to Dh562, while 22-carat gold gained Dh7.50 to reach Dh520.25 per gram. Other variants also set new peaks, with 21-carat trading at Dh499, 18-carat at Dh427.75 and 14-carat at Dh333.50 per gram.
In global markets, spot gold rose 1.64 per cent to $4,671.72 an ounce by 9.25am UAE time. Silver also advanced sharply, touching $94 an ounce earlier in the session before easing slightly to $93.19.
Market analysts said the surge reflected growing nervousness among investors following comments by US President Donald Trump threatening additional tariffs on the European Union over the future of Greenland. The prospect of further trade conflict has added to uncertainty already fuelled by unrest in parts of the Middle East.
Vijay Valecha, chief investment officer at Century Financial, said the fundamental outlook for gold remained positive. “As geopolitical risks increase, investors typically move into safe-haven assets like gold,” he said. “Key concerns include intensifying protests in Iran and growing tensions between the US and EU over Greenland, with the US sharpening its rhetoric.”
He added that recent developments in Washington had also supported bullion prices. The White House confirmed that President Trump had signed an order aimed at protecting the US supply of rare earth materials, a move that has drawn attention to strategic resource competition. At the same time, uncertainty surrounding the independence of the US Federal Reserve has unsettled markets, after several central bank leaders publicly backed the Fed chair following criticism from the president.
“These issues together are reinforcing the appeal of gold as a store of value,” Valecha said.
Silver has followed gold higher, supported by both investment demand and its industrial uses in electronics and renewable energy. Traders said the metal’s volatility remained higher than gold’s, but sentiment continued to favour further gains in the near term.
In Dubai, jewellers reported brisk interest from buyers seeking to lock in purchases despite the elevated prices. Some retailers noted increased demand from customers concerned that prices could rise further if global tensions persist.
From a technical perspective, Valecha said gold may encounter resistance around $4,685 an ounce along its current ascending trendline. However, he added that any pullback could be short-lived if political uncertainty continues to dominate market sentiment.
With gold now trading at unprecedented levels both locally and internationally, investors and consumers alike are closely watching developments in global diplomacy and monetary policy. For now, the precious metals market remains firmly in record territory, reflecting a world still searching for stability.
