Dubai gold jumps Dh7 in a day, hits monthly high amid global tensions

Dubai: Gold prices in Dubai surged sharply on Monday, delivering one of the biggest single-day increases this month and pushing retail rates closer to recent record territory. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The 24-karat rate climbed to Dh622.50 per gram, up from Dh615.25 on Sunday, marking a jump of more than Dh7 in just one day. The 22-karat variant rose to Dh576.50 from Dh569.75, reflecting a similar upward shift across popular jewellery categories.

Such a steep daily increase stands out even in a month that has already seen sustained volatility, driven largely by global macroeconomic uncertainty and strong investor demand for safe-haven assets.

February trend shows steady upward pressure

Price movements throughout February reveal a clear upward trajectory despite short-term swings. At the start of the month, 24-karat gold was trading near Dh589.50, before briefly dipping toward the Dh564 level on February 2, which marked the lowest point of the month.

Momentum began building from early February, with prices steadily recovering above Dh600 by mid-month. The rally intensified after February 17, when rates climbed from Dh590.75 and moved almost continuously higher, crossing Dh600 within days and gaining further pace in the past week.

By February 20, the 24-karat rate had reached Dh611.50, followed by steady gains that culminated in Monday’s sharp surge to Dh622.50. The broader trend shows that prices have risen by more than Dh30 since the month’s early lows, reflecting sustained buying interest despite intermittent corrections.

Global drivers push bullion higher

International markets continue to shape local price movements, with gold extending gains following three consecutive weeks of advances worldwide.

Bullion rose as much as 1.4% in global trading after uncertainty surrounding US trade policy weakened the dollar, making gold more attractive to investors holding other currencies.

Market sentiment shifted after President Donald Trump signalled plans to impose a global tariff of 15%, a move that followed a US Supreme Court ruling limiting emergency powers used to set duties. The ruling created fresh uncertainty around trade agreements with major partners, with officials in Europe, India, and Japan signalling delays or concerns about negotiations.

Geopolitical tensions are also supporting prices. Investors remain cautious about sovereign debt and currency stability, while attention in the Middle East is focused on escalating risks tied to US-Iran tensions, including the potential for military escalation despite ongoing diplomatic talks.

What it means for UAE buyers

Rising global uncertainty continues to translate quickly into Dubai’s retail gold prices, which closely track international benchmarks.

With prices now hovering near monthly highs and showing strong upward momentum, many buyers may face a dilemma between locking in purchases now or waiting for a potential pullback.

- With inputs from Bloomberg.