Dubai gold prices surge past Dh560 amid tariff shock

Dubai: Dubai’s gold market opened at record highs on Monday, with 24-karat prices breaching the Dh560 mark for the first time. The 24-karat rate stood at Dh561.25 at 8.10 am, up from Dh553.75 on Sunday. The 22-karat variety moved in tandem, reaching Dh519.75 compared with Dh512.75 a day earlier. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

This latest jump continues a strong upward trend seen throughout January, driven by rising geopolitical uncertainty and heavy investor demand for precious metals.

How prices moved this month

Gold has steadily advanced through the month. At the start of January, 24-karat prices hovered around Dh520, while 22-karat traded near Dh481. Momentum built through the second week, pushing 24-karat into the Dh540 range. By mid-month, prices crossed Dh550, and by January 19, they surged to Dh561.25.

The 22-karat segment mirrored the same pattern. Early-month levels near Dh480 strengthened past Dh500, before climbing above Dh510 and now reaching Dh519.75. This marks nearly a Dh40 gain for 24-karat and close to Dh38 for 22-karat in less than three weeks.

Global tensions fuel the rally

The surge aligns with sharp moves in global precious metals markets. Bloomberg reported that gold and silver jumped to record highs after President Donald Trump intensified his push to acquire Greenland, raising fears of a new trade conflict between the US and Europe.

Spot gold traded near $4,660 an ounce, while silver gained as much as 4.4% amid safe-haven demand. The US plans to impose tariffs on eight European countries that oppose the Greenland plan. Those levies will start at 10% from February 1 and increase to 25% in June.

European leaders are preparing possible counter-measures, including retaliatory tariffs on €93 billion worth of US goods. Bloomberg also noted that French President Emmanuel Macron may seek activation of the EU’s anti-coercion instrument, the bloc’s strongest trade retaliation mechanism.

Debasement trade supports metals

Precious metals have rallied sharply this year after similar gains in 2025. Bloomberg highlighted that renewed pressure on the Federal Reserve and concerns over central bank independence have encouraged investors to move away from currencies and bonds, strengthening demand for gold and silver.

Exchange-traded funds added to that momentum, with global gold holdings rising 0.9% last week, the biggest increase since September. Chinese investors have also rotated heavily into metals, further supporting the price spike.

Base metals join the uptrend

Copper also resumed gains as the dollar weakened following the tariff announcements. Copper has rallied for five consecutive months on supply shortages and strong demand from the artificial intelligence and renewable energy sectors.

China’s GDP growth met its official target of 5% last year, reinforcing expectations of sustained industrial demand. At the same time, falling Chinese home prices in December signal ongoing stress in the property sector, which could weigh on future metal consumption.

Chinese aluminium output reached record levels last year, while steel production dropped to a seven-year low, reflecting uneven demand across the industrial metals space.