Gold gains Dh2 in a day: Should investors hold or buy before the weekend?

Dubai: Gold prices in the UAE extended their record-breaking run on Friday, adding another Dh2 per gram since the morning as global bullion markets stayed firmly supported. By evening, 22-karat gold was trading at Dh430.50 compared with Dh429.00 earlier in the day, while 24-karat reached Dh465, up from Dh463.25.

Only a week ago, Dubai’s 24-karat price stood at Dh452.25 and 22-karat at Dh418.75.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.) Meanwhile, the Indian gold rate for 24-karat gold was back up at ₹11,869 per gram, and the rate for 22-karat gold rose to ₹10,880 per gram on Friday morning. 

The surge comes as global gold prices remain above $3,800 an ounce, driven by a combination of Federal Reserve policy expectations and geopolitical uncertainty. According to Rania Gule, Senior Market Analyst at XS.com – MENA, the latest leg higher has been fuelled by investor bets that the US central bank will cut rates more deeply and earlier than it has signalled, pushing real yields lower and lifting demand for safe-haven assets. She said the safe-haven trade had also been reinforced by fresh uncertainty from the US federal government shutdown and renewed geopolitical tensions, which have kept risk appetite fragile and defensive positioning strong.

Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds, said gold’s performance has already rewarded long-term holders. He pointed out that prices have delivered an 85% gain over the past 21 months, including a 37% rise in 2024 and a 36% increase in the past nine months alone. “Institutional investors, sovereign wealth funds and central banks have emerged as the largest buyers of gold,” he said, adding that he expects momentum to continue, with the possibility of prices moving toward $5,000 an ounce in the coming years.

For investors, the question is whether to keep riding the rally or lock in gains. Those already positioned have reason to stay put for now, given strong official demand and persistent geopolitical uncertainty. New buyers may prefer to be selective and watch key support levels, especially as the market waits for US jobs data and further Fed signals that could either reinforce or challenge the current narrative. After such a steep climb, the metal’s path will depend heavily on whether rate cut expectations hold and whether geopolitical risk stays elevated enough to keep gold’s safe-haven status intact.