UAE gold prices hit an all-time high. What’s driving the surge?

Dubai: Gold prices in the UAE shot past Dh500 for the third day, opening just above the milestone mark on Thursday.

By Thursday morning, 24K gold was trading at Dh509.25 per gram. The 22K variety jumped to Dh471.50.

That means gold buyers have seen prices rise well over Dh80 per gram in just two months. At the start of October, 24K gold was at Dh466.75, while 22K stood at Dh432. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.) 

The rally reflects a confluence of forces. Intensified US-China friction and broad investor expectations for extended Federal Reserve easing have strengthened gold’s appeal as a haven asset. The metal has advanced about 5% so far this week and earlier breached a peak above $4,227 an ounce. Meanwhile, silver also jumped over 3%, citing tight supply conditions in the London market.

Traders are pressing hard on bets that the Fed will deliver at least one outsized rate cut by year-end. Fed Chair Jerome Powell signalled this week that another 25 basis-point reduction is on track later this month.

Amid that, President Trump’s declaration of a trade war with China has stirred fears of prolonged damage to global growth, a backdrop that tends to nudge investor money toward gold even as Treasury Secretary Scott Bessent floated slowing the pace of further tariff hikes. The ongoing US government shutdown and what the market calls the debasement trade, a shift away from sovereign debt and currencies toward hard assets in fear of unchecked deficits, have added momentum. Central banks’ steady gold buying remains another structural pillar supporting the climb.

When rates go down, the opportunity cost of holding non-yielding assets like gold shrinks. Bonds and cash yield less, making gold more attractive. With money markets now pricing in a 97% chance of a 25 basis-point cut in October, the setup is bullish.

For residents and jewellery buyers, the timing is tricky. Prices have climbed aggressively since September, and many are wondering whether the run has further to go. While some jewellery customers are feeling the pinch, longer-term investors view the rally as validation of gold’s role as a safe haven.