Gold prices hit record highs in Dubai. Is there any relief ahead for buyers?

Dubai: Gold prices in Dubai rose to fresh all-time highs Friday morning as global precious metals extended their record-breaking rally. The 24-karat variety stood at Dh543.25 per gram at 8:10 am, up from Thursday’s close of Dh539.75. The 22‑karat variety rose to Dh503, up from Dh499.75 the previous day. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The move came amid sharp gains in international bullion markets, where spot gold climbed as much as 1.2% to above $4,530 an ounce. Silver followed suit, crossing $75 for the first time, while platinum surged past $2,400.

Global precious metals at historic peaks

Frictions in Venezuela, where the United States escalated its oil blockade against President Nicolás Maduro’s government, are fueling haven demand, while renewed geopolitical risk in Africa has also rattled markets. On Thursday evening, President Donald Trump said US forces carried out a “powerful and deadly strike” against a terrorist group in Nigeria.

A weaker dollar and expectations of further monetary easing are reinforcing gold’s role as a hedge against uncertainty. The US Federal Reserve’s three interest rate cuts this year and bets on more reductions in 2026 continue to underpin demand for metals that yield no income but gain appeal when real borrowing costs fall.

Haven flows and ETF buying drive 2025’s record run

Gold is now up roughly 70% in 2025, and silver more than 150%, both heading for their strongest annual performance since 1979. The rally has been supported by heavy central‑bank purchases and surging flows into exchange‑traded funds. State Street Corp.’s SPDR Gold Trust, the world’s largest gold ETF, has added more than 20% to its holdings this year as investors chase exposure to non‑currency assets.

President Trump’s push to reshape global trade relationships and his public criticism of the Fed have deepened concerns over economic policy stability. This, along with ballooning global debt, has escalated what traders call the “debasement trade", a shift away from sovereign bonds and fiat currencies into hard assets.

Gold’s resilience was already evident after its brief October correction, when it swiftly rebounded from $4,381 to new highs. The latest surge suggests that investors are treating dips as buying opportunities, especially amid lingering global inflation and widening fiscal risks.

Platinum and silver extend powerful rallies

Silver gained almost 5% on the day, marking its fifth straight session of advances. Speculative flows and lingering supply constraints since the October short squeeze have amplified its volatility. London vaults have seen strong inflows this quarter, while much of the global supply remains trapped in New York warehouses pending a US Commerce Department review that could impose tariffs on critical mineral imports.

Platinum’s advance has been just as dramatic. The metal rose above $2,400 for the first time since 1987, capping a 40% monthly gain and more than doubling in value this year. Besides industrial use in automotive and jewellery sectors, production disruptions in South Africa, home to about 70% of global supply, have pushed the market into a third consecutive annual deficit.

For now, precious metals show few signs of cooling. While technical charts hint at overbought conditions, the mix of geopolitics, fiscal risks and monetary easing continues to support record valuations heading into the final trading days of 2025.

- With inputs from Bloomberg.