Dubai gold prices jump Dh7 a gram after global turmoil spooks markets

Dubai: Gold prices in Dubai jumped sharply on Monday morning, extending an early-year rally as investors moved decisively toward safe-haven assets following a sudden escalation in global geopolitical risk.

The price of 24-karat gold rose to Dh529.25 per gram, up from Dh522 on Sunday. The 22-karat variety climbed to Dh490 from Dh483.25. The surge pushed local prices to their highest levels this month and marked a clear acceleration from the gradual gains seen at the start of January.

The move in Dubai closely followed the rally in international markets after the US confirmed it had captured Venezuelan leader Nicolás Maduro over the weekend. Spot gold climbed as much as 2.1% during Monday’s session, breaking above $4,420 an ounce, while silver surged nearly 5%, outpacing gold as risk appetite deteriorated.

President Donald Trump said Washington plans to “run” Venezuela following Maduro’s removal, adding that the US required “total access” to the country, including its oil reserves. The comments left investors grappling with uncertainty about Venezuela’s future governance and the broader geopolitical fallout, driving renewed demand for assets seen as a form of protection during periods of instability.

Gold entered 2026 with considerable momentum after delivering its strongest annual performance since 1979. Prices hit repeated record highs last year, supported by aggressive central-bank buying and steady inflows into bullion-backed exchange-traded funds. The rally was further reinforced by three consecutive interest rate cuts from the US Federal Reserve, which increased gold's appeal by lowering the opportunity cost of holding non-yielding assets.

Major banks continue to see room for further gains. Goldman Sachs said last month that its base case points to gold rising toward $4,900 an ounce this year, with upside risks if the Federal Reserve delivers additional rate cuts while the Trump administration rejigs the leadership of the US central bank.

Concerns about the long-term health of US public finances have added another layer of support. Speaking on Sunday, former Federal Reserve chair and treasury secretary Janet Yellen said conditions were strengthening for fiscal dominance, a scenario in which the scale of government debt pressures the central bank to keep interest rates low to manage servicing costs. Historically, such environments have been favourable for gold.

Silver has rallied even more aggressively than gold over the past year, pushing through levels that many market participants once considered unrealistic. Alongside the macroeconomic forces lifting gold, silver has benefited from persistent concerns that the US administration could eventually impose import tariffs on refined silver, tightening supply and amplifying price swings.

- With inputs from Bloomberg.