Going gold shopping? Here are 3 reasons prices remain high today

Dubai: Dubai gold prices are hovering just below their all-time highs, tracking a powerful global rally in bullion. Local buyers face some of the highest rates on record, with further moves hinging on US inflation data and fast-escalating geopolitical tensions.

In Dubai, 24-karat gold stood at Dh519.75 per gram at 8:30 a.m., while 22-karat traded at Dh481.25, leaving retail prices within touching distance of record highs. The firmness in local rates reflects both the surge in global bullion and sustained safe-haven demand from residents and regional buyers. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

Monthly price snapshot

Dubai’s gold market has seen a steady climb through December. On December 1, 24-karat was at Dh511.75 and 22-karat at Dh473.75. After briefly easing to Dh503.75 and Dh466.50 on December 2, prices moved higher, largely holding in the Dh505–Dh507 band for 24-karat and around Dh468–Dh470 for 22-karat through the first week. From December 10, the uptrend accelerated, with 24-karat jumping to Dh506.25 and then Dh515.75, while 22-karat advanced from Dh468.75 to Dh477.50. By mid-month, the rally pushed 24-karat to Dh518.25 and then Dh519.75 on December 16 and 17, and 22-karat to Dh480 and then Dh481.25, putting both grades at their highest levels of the month and close to all-time highs.

Global gold nears record

Globally, spot gold rose above $4,325 an ounce, recovering from a brief pullback that ended a five-day winning streak and leaving it just shy of the record above $4,381 set in October. The metal has jumped by roughly two-thirds this year and is on track for its strongest annual performance since 1979, supported by heavy central-bank buying and a shift away from government bonds and major currencies.

Fed policy and data in focus

Investors are watching Thursday’s US inflation release for fresh clues on how much room the Federal Reserve has to cut interest rates again after delivering a third consecutive reduction last week. Lower borrowing costs tend to support gold, which does not pay interest. Traders currently assign roughly a one-in-four chance of another cut in January, while recent non-farm payrolls data showed a continued cooling in the US jobs market without decisively changing rate expectations.

Geopolitics adds to haven demand

The market is also reacting to rising geopolitical risk. Gold drew additional support after President Donald Trump ordered a blockade of all sanctioned oil tankers linked to Venezuela. This escalation comes alongside a military buildup in the region and threats of possible land strikes. The move against President Nicolas Maduro’s government has reinforced bullion’s role as a hedge against geopolitical shock.

New Fed chair in the spotlight

Attention is turning to the upcoming appointment of a new Fed chair, which could shape the policy path for 2026 and beyond. Trump is slated to interview Fed Governor Chris Waller for the role, according to reports citing unnamed sources, with one or two more candidates expected to meet him this week. Treasury Secretary Scott Bessent has signalled that an announcement is likely in early January.

For Dubai consumers, the combination of record-high global prices, central bank buying and elevated geopolitical tensions means gold purchases are now as expensive as they have been in years, making timing and budget discipline critical for anyone looking to buy jewellery or small investment bars.

- With inputs from Bloomberg.