UAE gold inches closer to Dh500 mark after Dh9 jump in a day

Dubai: Gold prices in the UAE are back on the move — and fast. After another sharp spike on Monday, 24-karat gold is now inching dangerously close to the Dh500 mark per gram, climbing Dh9 in just one day.

By Monday evening, 24K gold was trading at Dh493.25 per gram, up from Dh484.25 the previous day. The 22K variety jumped to Dh456.75, compared to Dh448.25 on Sunday.

That means gold buyers have seen prices rise over Dh80 per gram in just two months. At the start of October, 24K gold was at Dh466.75, while 22K stood at Dh432. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.) 

What’s driving gold now?

Globally, gold has shot past $4,100 an ounce, setting yet another record. Traders are piling into gold as worries grow over U.S.-China trade tensions and the possibility of fresh U.S. interest rate cuts later this year.

The uncertainty has made investors shift their money into safer assets like gold, traditionally seen as a hedge during political or economic turmoil.

Analysts from major global banks are now racing to raise their forecasts. Bank of America expects gold to average around $4,400 an ounce by 2026, while Societe Generale sees it reaching $5,000 an ounce by the end of next year.

Why rate cuts boost gold?

It’s all about returns. When interest rates fall, holding cash or bonds becomes less rewarding. Gold, which doesn’t pay interest, suddenly looks more appealing. Investors start buying it — and prices rise.

Money markets are now pricing in a 97% chance that the U.S. Federal Reserve will cut rates by 25 basis points at its next meeting later this month. That’s one of the biggest reasons gold is surging globally.

Political drama fuels fire

Tensions between the U.S. and China are back in focus. President Trump recently threatened 100% tariffs on Chinese goods before softening his stance, saying things would “be fine.” But with both countries still negotiating trade terms, investors are bracing for more friction.

At the same time, the U.S. government shutdown — now entering its second week — has paused key economic data releases, adding another layer of uncertainty.

When politics, markets, and global confidence collide, gold often benefits — and that’s exactly what’s happening now.

Impact on UAE residents

For UAE shoppers and investors, the timing of buying gold has become tricky. Prices have been on an almost nonstop climb since September, and with forecasts pointing higher, many are wondering whether to buy now or wait.

Jewellery buyers are already feeling the pinch, while long-term investors see this as confirmation that gold is regaining its strength as a “safe haven” asset. If prices keep rising at this pace, 24K gold could soon hit Dh500 per gram — a psychological level that hasn’t been seen in years.

Bottom line?

Global events are giving gold a powerful push, and the UAE market is feeling every bit of it.

Whether you’re planning to buy jewellery or thinking of investing in gold, it’s worth keeping an eye on both global headlines and local price boards — because at this rate, that Dh500 milestone may be just days away.