Gold up Dh45 in 4 weeks, hits new high as UAE buyers brace for more gains

Dubai: 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.

On Tuesday morning, prices surged to fresh records, with 22-karat at Dh418.50 per gram and 24-karat at Dh451.75—up Dh3—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 ₹11,307 per gram, and the rate for 22-carat gold is about ₹10,365 per gram Tuesday morning. 

Despite record-high prices, UAE jewellers report that consumers are not fundamentally shifting away from gold purchases. Instead, they quickly adapt to new price levels as the "new normal," particularly for culturally significant occasions like weddings and festivals.

Globally, gold posted back-to-back records this week, rising above $3,720 an ounce on Monday and advancing to $3,749.27 on Tuesday. "The move isn’t subtle," said Stephen Innes, Managing Partner at SPI Asset Management.

"Gold has ripped to a fresh record high at $3,748, tallying five straight weekly gains in a market that looks less like an orderly climb and more like a vertical thrust. The spark? Fed rate cuts lighting a fire under macro funds, central banks continuing their quiet hoarding, and the retail and wealth management crowd scrambling to vault bullion."

Investors are pouring money into gold ETFs—the highest in three years—betting that the US Federal Reserve will continue cutting interest rates. ETF inflows hit a three-year high on Friday, jumping nearly 1% in a single day. Silver also rose, gaining over 50% since the start of the year.

The Fed’s rate cuts, rising central bank gold purchases, and ongoing global uncertainties are driving demand for these safe-haven metals. Gold has now seen five straight weeks of gains. Analysts, including Goldman Sachs, expect prices to continue rising, making it a strong option for investors looking to protect their wealth.

For UAE buyers, this means gold prices in the local market are likely to remain high in the days to come.