From record to record: UAE gold hits new all-time high, tracking global prices

Dubai: Gold rates in the UAE opened at a new high of Dh422.75 per gram (for 22-karat) and Dh456.75 (for 24-karat) on Monday morning, up Dh3 from its levels ahead of the weekend, as global prices edged closer to $3,800 per ounce.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.) Meanwhile, the Indian gold rate for 24-carat gold spiked to ₹11,547 per gram, and the rate for 22-carat gold rose to ₹10,585 per gram on Monday morning. 

Gold prices in Dubai last hit a record level last week, with 24K and 22K gold hitting an all-time high of Dh452.25 and Dh418.75 per gram, respectively.

Globally, gold prices surged to a new all-time high on Monday, reaching $3,798.73 per ounce, driven by global uncertainty and strong investor demand. This marks the sixth week in a row that gold prices have gone up.

Why the rise?

Investors are concerned about a possible US government shutdown, which could delay key economic data – especially a major jobs report expected on Friday.

If the US jobs market shows signs of weakness, the Federal Reserve (Fed) may be more likely to cut interest rates. Lower interest rates usually make gold and other precious metals more attractive, since they don’t earn interest.

UAE investors often turn to gold as a safe-haven asset during uncertain times. With rising prices, some may see this as a good time to sell, while others may wait for further increases.

Key takeaway: With uncertainty in the US, gold and precious metals are becoming more popular among investors globally – including in the UAE.