UAE gold prices just Dh20 shy of Dh500 mark — and there’s no sign of slowing

Dubai: Gold prices in the UAE are climbing relentlessly, with shoppers now paying close to Dh480 per gram for 24-karat gold — just Dh20 away from the symbolic Dh500 mark.

By Thursday evening, Dubai gold rates spiked by Dh5 from yesterday, with preferred 22-karat gold now at Dh444 per gram. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.) 

The surge mirrors a global rally that saw gold futures - an indicator of of where prices are headed - briefly cross $4,000 an ounce for the first time ever on Tuesday, driven by investors rushing to safe havens amid rising political and economic uncertainty.

The record-breaking move came as the US government shutdown dragged into its second week, leaving key economic data delayed and thousands of federal employees unpaid. The lack of clarity on when the political standoff will end has rattled markets, adding to fears already fuelled by President Donald Trump’s renewed trade tariffs on major global economies.

Investors are seeking protection from volatility — and gold, once again, is their shelter of choice.

Gold futures in New York briefly jumped above the $4,000 mark early Tuesday, after closing the previous day at $3,960.60 per troy ounce. Prices have soared nearly 50 per cent since January, when gold was trading around $2,670. Analysts attribute the rally to a mix of political risk, trade disruptions, and central bank buying.

Trump’s aggressive tariff moves have raised import costs and slowed hiring, while inflation pressures have crept higher. Meanwhile, the prolonged shutdown has deprived investors — and the Federal Reserve — of key economic data, complicating decisions on future rate cuts.

Multiple Dubai-based commodities traders flagged that investors are continuing to follow the money when it comes to anything tied to uncertainty — and right now, that means gold.

Adding to the unease, political turmoil in France — with President Emmanuel Macron facing calls to resign over a worsening fiscal crisis — and leadership changes in Japan have further strengthened demand for safe-haven assets.

Reflecting the bullish sentiment, Goldman Sachs raised its forecast for gold to $4,900 an ounce by December 2026, up from its earlier projection of $4,300, citing central-bank demand and investor inflows.

In Dubai and Sharjah’s gold souqs, retailers say shoppers are still buying — but more selectively. Many are opting for smaller pieces, coins, or low-weight jewellery as prices climb. Others are buying now, fearing that the Dh500 level could be breached soon.

“People come in saying they’ll wait for prices to fall,” said a long-time Deira jeweller. “But every time they wait, gold climbs again. It’s been that kind of year.”

With no sign of the rally slowing — and more investors turning to gold as global uncertainty deepens — UAE shoppers may have to get used to higher prices for longer.

Gold’s reputation as the ultimate safe haven seems firmly intact. And with the world on edge, it’s once again shining brightest when everything else feels uncertain.