Gold prices surged to a fresh all-time high in Dubai on Wednesday, continuing a rally that has gripped global markets amid expectations of monetary easing by the US Federal Reserve and growing demand for safe-haven assets.
According to data from the Dubai Jewellery Group, 24K gold opened at Dh426 per gram, up from Dh424.25 per gram at Tuesday’s close. The metal notched its second consecutive record high in as many days. Other categories also saw gains, with 22K opening at Dh394.5, 21K at Dh378.25, and 18K at Dh324.25 per gram.
In international markets, spot gold was trading at $3,533.24 per ounce at 9:30 a.m. UAE time, a 0.15 per cent increase. Analysts said the move was fueled by shifting expectations that the US central bank could begin cutting interest rates, a factor that typically boosts non-yielding assets like gold.
“If the upward trend continues and there is no profit-taking, the 22K price could soon cross Dh400 per gram,” traders in Dubai said.
Linh Tran, market analyst at XS.com, noted that gold’s momentum is being driven by a mix of macroeconomic forces and capital inflows. “After setting new record highs, the precious metal has continued to attract investors thanks to expectations that the US Federal Reserve will soon shift toward monetary easing, declining real yields, and rising demand for safe-haven assets amid global economic uncertainties,” he said.
Tran added that strong central bank buying is also bolstering prices. “Many countries are increasing their gold reserves to diversify foreign exchange holdings and reduce reliance on the US dollar. At the same time, physical gold demand in Asia — particularly from China and India — remains a cornerstone for long-term support.”
Dubai’s gold market, a global hub for bullion trading and jewelry sales, has been quick to reflect the surge in international prices. Retailers said demand has remained steady despite the higher rates, with some buyers rushing to make purchases before further increases.
Market observers cautioned that while the rally remains underpinned by robust fundamentals, profit-taking could slow momentum in the near term. Still, the prevailing sentiment is bullish, with gold expected to remain a preferred asset class for both institutional and retail investors seeking stability amid geopolitical risks and currency market volatility.
With prices setting new benchmarks almost daily, analysts believe the rally could continue in the coming weeks, particularly if central banks maintain their current pace of buying and the Federal Reserve signals a dovish policy stance.
