Dubai gold prices break records twice in one day on strong global demand

Dubai. Gold prices in Dubai rocketed to a fresh all-time high for the second time Monday, reaching Dh531.50 per gram for 24-karat by 4:15 pm after touching Dh526.50 at 7:45 am. The 22-karat variety climbed to Dh492.25 from Dh487.50, mirroring a global surge that puts both metals on track for their best year since 1979.

The metal jumped over 1.5% internationally to top its prior $4,381 per ounce peak from October, with silver gaining as much as 3.4% toward $70. Traders price in two Federal Reserve cuts for 2026 amid unclear US data, while President Donald Trump pushes for aggressive easing. Lower rates boost non-yielding assets like gold.

Geopolitics adds haven rush

Escalating flashpoints amplified safe-haven flows. The US ramped up its Venezuela oil blockade, boarding a third tanker to squeeze President Nicolás Maduro. Ukraine struck a Russian shadow fleet vessel in the Mediterranean for the first time. Such risks, plus Trump's trade threats, drove nearly 70% yearly gains fueled by central bank buys and ETF inflows.

December tracked steady climbs, with 24-karat rising from Dh511.75 on December 1 to Monday's double peaks. The past two weeks showed relentless momentum on investor bets and global benchmarks.

Record year defies pullbacks

Gold rebounded hard from an October dip seen as overstretched. Goldman Sachs forecasts $4,900 per ounce in 2026 base case, with ETF demand now vying with banks for tight supply.

The World Gold Council highlighted resilience in its report. “In a turbulent year marked by heightened macroeconomic and geopolitical risks, gold’s volatility has increased alongside that of other assets, including major equity indices. That said, its long-term behaviour has remained broadly consistent, and comparable to that of other growth assets.” Sharp spikes proved short-lived, it noted, as gold cuts portfolio risk amid fading diversification tools. “Against a backdrop where traditional diversification benefits are waning, gold continues to play a valuable role in reducing overall portfolio risk, reinforcing its importance for investors seeking stability amid uncertainty.”

Debasement trade lifts bullion

Investors fled bonds and currencies on debt fears, spurring the debasement play. Commodities shone as insurance, with gold thriving on currency woes and risks despite energy volatility from OPEC and tariffs. Christian Gattiker, Head of Research at Julius Baer, said success in 2025 turned on flexibility, diversification and risk discipline. Those traits stay essential for 2026's reactive policy and unpredictability.

- With inputs from Bloomberg.