UAE gold hits record high twice in a day, now up Dh100 in two months

Dubai: Gold prices in the UAE not only stayed above Dh500 for a third straight day but hit two new record highs — first at Dh509, then climbing further to Dh512.25 later in the day.

The 22K variant jumped to Dh474.50 by Thursday evening, compared to Dh471.50 earlier in the day and Dh468.25 as of yesterday's closing. As of mid-September, 24K gold was at Dh439.50, while 22K stood at Dh407.00.

That also means gold buyers have seen prices rise Dh100 per gram in two months. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.) 

What’s fueling the jump?

The rally reflects a confluence of forces. Intensified US-China friction and broad investor expectations for extended Federal Reserve easing have strengthened gold’s appeal as a haven asset.

The metal has advanced about 5% so far this week and on Thursday breached a peak above $4,270 an ounce. Meanwhile, silver also jumped over 3%, citing tight supply conditions in the London market.

Traders are pressing hard on bets that the Fed will deliver at least one outsized rate cut by year-end. Fed Chair Jerome Powell signalled this week that another 25 basis-point reduction is on track later this month.

Amid that, President Trump’s declaration of a trade war with China has stirred fears of prolonged damage to global growth, a backdrop that tends to nudge investor money toward gold even as Treasury Secretary Scott Bessent floated slowing the pace of further tariff hikes.

The ongoing US government shutdown and what the market calls the debasement trade, a shift away from sovereign debt and currencies toward hard assets in fear of unchecked deficits, have added momentum. Central banks’ steady gold buying remains another structural pillar supporting the climb.

Why rate cuts matter

When rates go down, the opportunity cost of holding non-yielding assets like gold shrinks. Bonds and cash yield less, making gold more attractive. With money markets now pricing in a 97% chance of a 25 basis-point cut in October, the setup is bullish.

For residents and jewellery buyers, the timing is tricky. Prices have climbed aggressively since September, and many are wondering whether the run has further to go. While some jewellery customers are feeling the pinch, longer-term investors view the rally as validation of gold’s role as a safe haven.