Gold prices continued their sharp rally on Thursday, reaching new record levels as investors sought safe-haven assets amid growing global uncertainty and escalating tensions between the United States and Iran. The precious metal crossed the $5,500 mark globally, while 22K gold in Dubai surpassed Dh600 per gram for the first time.
Data from the Dubai Jewellery Group showed the 24K gold price jumped Dh30.5 per gram to a record Dh666 per gram on Thursday. Similarly, 22K gold surged to Dh616.75 per gram, an increase of Dh28.25. Other variants also saw gains, with 21K trading at Dh591.25 per gram, 18K at Dh506.75, and 14K at Dh395.25 per gram.
On international markets, gold crossed $5,500 for the first time, trading at $5,549.75 per ounce on Thursday morning, representing a 4.6 percent increase. Analysts now predict that gold could reach $6,000 per ounce later this year, driven by expectations of further interest rate cuts by the US Federal Reserve and continued geopolitical instability.
Tensions between Washington and Tehran have been mounting. On Thursday, former US President Donald Trump issued a warning to Iran, urging the country to come to the negotiating table or face the possibility of military action. The United States has already positioned aircraft carriers in the Middle East as part of pressure tactics. Trump has also left open the option of additional strikes following Washington’s support of Israel’s 12-day campaign in June, which targeted Iran’s nuclear and ballistic missile programs.
The surge in gold reflects a broader trend of investors turning to precious metals amid heightened geopolitical risks and uncertainty over global economic policies. Gold, long considered a safe-haven investment during crises, has attracted renewed interest as tensions in the Middle East persist and market participants weigh the implications of potential US-Iran conflict.
Market watchers noted that ongoing supply constraints in physical gold markets, combined with strong buying in Dubai and other key hubs, have contributed to the rapid price increases. Traders in Dubai reported high demand for both 22K and 24K gold, with local buyers seeking to hedge against volatility in currency and equity markets.
The momentum in gold markets shows no signs of slowing, with investors closely monitoring developments in the Middle East and US monetary policy. With geopolitical uncertainty remaining high, precious metals are likely to continue drawing attention from both retail and institutional investors looking for stability in a volatile environment.
