Dubai gold prices jump Dh45 in 20 days, crosses Dh565 on global turmoil

Dubai: Dubai’s gold market opened higher on Tuesday, extending its rally to fresh historic highs as global political tensions lifted demand for safe-haven assets. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

At 9.30am, 24-karat gold was trading at Dh566 per gram, up from Dh562.25 on Monday. The 22-karat variety climbed to Dh524, compared to Dh520.75 the previous day. The gains continue a sharp upward trend that has defined January’s price movement.

Since the start of the month, 24-karat gold has risen Dh45.75 from Dh520.25 on January 1. The 22-karat variety has gained Dh42.25 over the same period, rising from Dh481.75 at the beginning of the year.

Price movements through January reflect steady, persistent demand. Early in the month, 24-karat gold traded in the Dh520 range before gradually advancing. By mid-January it had crossed Dh550, then strengthened further into the Dh560 range by the third week. The 22-karat rate followed a similar pattern, moving from Dh480 levels at the start of the month to above Dh500 by January 10, and continuing higher toward Dh520 before reaching Tuesday’s Dh524 mark.

Global gold surges on tariff fears

The local rally mirrors a broader global surge in precious metals.

Gold reached a record $4,694.35 an ounce on Tuesday, while silver, after touching an all-time high of $94.7295 earlier, pulled back. The latest gains come as markets reacted to renewed geopolitical tensions following US President Donald Trump’s tariff threats toward European nations over Greenland. The developments have unsettled investors, reviving defensive positioning across global markets.

Ahmad Assiri, research strategist at Pepperstone, said the situation has brought global trade tensions back into focus, but with a wider strategic dimension.

“Renewed threats by the US president to impose tariffs of 10%, with the possibility of raising them to 25% at a later stage, have brought the global trade tensions to the forefront, but this time within a broader geopolitical context that goes beyond the trade balance to touch on issues of pure influence as the case for Greenland and the US presence in the Arctic,” he said.

He added that the European response could add further volatility, with France calling for activation of the EU’s Anti Coercion Instrument and Brussels preparing retaliatory tariffs worth €93 billion on US goods.

Against that backdrop, gold continues to benefit from the rising uncertainty.

“Precious metals stand out as the biggest beneficiaries of rising geopolitical uncertainty and the return of political risks. Gold in particular continues to move within a upward trend hovering around the $4700 per ounce threshold, supported by a mix of increasing hedging demand, declining risk appetite in equity markets and macro factors most notably monetary expectations and a weaker dollar over the medium term,” Assiri noted.

He said the renewed trade tensions provide an additional layer of support for gold, positioning it as the primary hedge against political fragmentation and protectionist risks. “$5,000 per ounce do not appear to be overly optimistic scenario but rather a logical medium-term target roughly 7% away and firmly on the table especially if the language of playing cards persists or expands geographically or politically,” he said.

Silver, he added, reflects a similar advance, although it remains more volatile given its sensitivity to wider market swings.

Market participants now expect precious metals to remain supported in the near term, with investor sentiment leaning defensive until a clearer diplomatic or economic path emerges.

“Precious metals are expected to remain the clearest expression of the prevailing defensive mood in markets until a negotiation path become clearer. The broader picture does not necessarily point to broad based sell offs similar to episodes seen last year, but rather to an extended phase of political push and pull, in which gold stands as the most prominent near-term winner from rising uncertainty,” Assiri said.

- With inputs from Bloomberg.