Crowd-favourite 22-karat gold crosses Dh500 in Dubai on its 50th record day

Dubai: Gold prices in Dubai reached another all-time high on Tuesday, with 24-karat gold reaching Dh540.25 per gram, up 1.37% from Dh533 the day before. The popular 22-karat variety shattered the Dh500 barrier for the first time at Dh500.25, climbing 1.29% from Dh493.75. Barely a month ago, on November 24, those levels lingered at Dh495 and Dh458.50, respectively. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

This marks the 50th record-breaking day for gold this year, mirroring bullion's global push past $4,480 an ounce after Monday's 2.4% surge, its largest single-day gain in over a month. Silver also notched fresh highs near $69.70.

The past month paints a clear picture of relentless upward pressure. On November 24, 24-karat gold traded at Dh495 with 22-karat at Dh458.50. Prices edged higher through late November, hovering around Dh500 for 24-karat by month's end. Early December saw steady gains into the mid-Dh510s, stabilising briefly around Dh518 mid-month before accelerating. By December 17, both varieties topped Dh520 and Dh480, then surged past Dh530 and Dh490 by December 22. Tuesday's leap capped a month in which 24-karat rose by over 9% overall.

Rate cuts and tensions drive momentum

Traders now bet on further Federal Reserve easing next year, favouring non-yielding metals in a lower-rate world. US President Donald Trump's trade overhauls and central bank pressure earlier supercharged the 70% yearly rally, fueled by central bank hoarding and ETF inflows that grew every month except May.

Geopolitical strains sharpened the safe-haven rush. The US tightened its Venezuela oil blockade, escalating pressure on President Nicolás Maduro's regime. Such risks cemented gold's path to its strongest annual showing since 1979.

Quick rebound sets 2026 stage

Gold snapped back from October's $4,381 peak, dismissed then as overcrowded. Goldman Sachs now projects $4,900 per ounce as the base case for 2026, citing ETF competition for scarce supply amid central bank buying.

The World Gold Council pointed to last week's policy patchwork, from the ECB holds and Bank of England cuts to Bank of Japan hikes, alongside US jobs resilience, cooling inflation and China's slowdown. US Treasury yields dipped while equities were mixed and oil firmed. A close Fed chair race between Kevin Hassett and Kevin Warsh raises independence worries either way. Technically, gold completed a triangle pattern, signalling potential for more records.

Debasement fears anchor demand

Investors fled bonds amid concerns about a debt explosion, embracing the debasement trade that shuns eroding currencies. Silver's 140% surge outpaced gold's, lifted by speculation and Shanghai futures volumes that echoed October's short squeeze.

The rally tests budgets but highlights gold's enduring appeal as both an asset and a tradition. With central banks dominant, retail hesitation barely dents the structural bid, positioning prices for sustained highs into next year.

- With inputs from Bloomberg.