UAE: Gold expected to soon cross 'unprecedented' price level worldwide

Dubai: Gold is surging again, with US futures climbing above $3,800 per ounce for the first time. The precious metal is now on track for its best month since 2020, with prices up nearly 45% so far this year.

US gold futures provide a near-term gauge of prices, signaling where bullion may trade in the coming weeks.

In the UAE, gold has risen Dh45 over the past four weeks, jumping nearly 10 per cent this month. The rally accelerated after it hit a new high for the second time this week, leaving UAE buyers bracing for further increases.

By Tuesday evening, prices surged to fresh records, with 22-karat at Dh422.50 per gram and 24-karat at Dh456.25—up Dh8 from yesterday's close—making gold far less affordable for many buyers.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.) Meanwhile, the Indian gold rate for 24-carat gold was at ₹11,569 per gram, and the rate for 22-carat gold is about ₹10,605 per gram Tuesday evening. 

The rally has been fueled by a combination of global economic moves and investor sentiment. China’s central bank is reportedly seeking to act as a custodian of sovereign gold reserves, inviting friendly countries to store bullion within its borders. This effort strengthens China’s influence in global bullion markets and adds momentum to the ongoing price surge.

Investors are also turning to gold as a safe haven amid economic uncertainty. Expectations of potential US interest rate cuts, pressure on the Federal Reserve to lower rates, and geopolitical tensions are all driving demand for the non-yielding metal.

“Gold has become the market’s anchor,” said Ahmad Assiri, research strategist at Pepperstone. “While equities and tech remain in focus, gold continues to attract investors seeking stability and protection against inflation.”

Traders are now watching closely for signals from Fed Chair Jerome Powell, with upcoming earnings reports and short-term debt auctions likely to influence market direction.

With momentum strong and global conditions supportive, gold appears poised to challenge new all-time highs, putting $3,800 per ounce firmly in sight.