Unstoppable: Gold hits new record price again, Dubai jewellery costs to spike further

Dubai: Gold’s record-breaking run is showing no signs of slowing. The precious metal spiked as much as 1.3% on Tuesday to top $3,523 an ounce, beating the peak set earlier in the day and the record closing in April.

The surge has cemented gold’s status as the year’s standout commodity, up more than 30% since January. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.)

Analysts say the rally is being fueled by expectations of US interest-rate cuts, resurgent inflation worries, and political unease in Washington.

“Gold alone has surged to a new realm as the ‘chosen’ asset embodying the search for certainty amid looming macro events,” said Ahmad Assiri, Research Strategist at Pepperstone. He pointed to a confluence of inflation concerns, Fed policy shifts, and anticipation around upcoming US economic data.

For UAE residents, the global rally is translating into higher daily costs for gold jewellery. In Dubai, the 22-karat rate has risen to Dh390 per gram, up from Dh376 just a week ago. That’s a jump of Dh15.25 in only eight days—squeezing wedding shoppers, festival buyers, and those looking to make routine purchases.

Prices 'unlikely to cool'

UBS strategist Joni Teves noted that investor appetite is unlikely to cool anytime soon. “Our base case is that gold continues to make new highs over the coming quarters. A lower interest rate environment, softer economic data and continued elevated macro uncertainty and geopolitical risks boost gold’s role as a portfolio diversifier,” she said.

Meanwhile, political uncertainty in the US is adding fuel. An escalation in President Donald Trump’s attacks on the Federal Reserve this year has raised fresh doubts about the central bank’s independence, unnerving global investors.

“The last time gold hit $3,500 was during intra-day trading, so we would be keen to see if gold manages to make a daily close above that level as that could lend some momentum,” said Christopher Wong, strategist at Oversea-Chinese Banking Corp.

For UAE shoppers, that momentum could mean more expensive jewellery in the weeks ahead. With the rally showing no signs of easing, the dilemma remains: buy now, or risk paying more tomorrow.