Dubai: Gold Prices Jump By Dh4.5 To New All-Time High

Gold prices jumped Dh4.5 per gram to a new record high in Dubai on Wednesday, as spot gold exceeded $3,560 per gram.

On Wednesday evening, 24K was selling at Dh428.75 per gram, up from Dh424.25 per gram at the close of the markets on Tuesday.

22K inched closer to Dh400 per gram as the price rose to Dh396.75 per gram. Meanwhile, 21K and 18K opened higher at Dh380.25 and Dh326 per gram, respectively.

Spot gold was trading at $3,562.59 per ounce on Wednesday evening.

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Analysts expect the yellow metal price to likely maintain its upward trend as a weaker US job market will push the Federal Reserve to cut interest rate to support the employment market. Hence, this and other factors, such as central bank buying and geopolitical tensions around the world, will support the yellow metal.

Ole Hansen, head of commodity strategy at Saxo Bank, said precious metals surged to a fresh record, extending a strong 2025 rally that has propelled the metal up over 34 per cent year-to-date.

“The move is supported by a potent mix of favourable rate-cut expectations and worries about US Federal Reserve independence, amid a broader fragmentation of the global order that is reshaping safe-haven flows. Markets now anticipate a near-certain rate cut in September with potential acceleration later in the year, which lowers front-end yields and reduces the opportunity cost of holding gold,” said Hansen.

In parallel, he said, governance concerns such as the process to appoint a new Fed chair and questions around central-bank independence have added an additional premium to gold as a hedge against political interference.

“Geopolitical strain and diverging reserve diversification by central banks and sovereign wealth funds have further underpinned demand for gold, while long-end yields and a dimming appeal of traditional bonds have nudged investors toward tangible assets like gold ,” he added.

Vijay Valecha, chief investment officer of Century Financial, said the rally was driven by higher expectations of US interest-rate cuts and traders seeking safety after a selloff in equity and bond markets.

“Uncertainty about the ruling on whether US President Donald Trump has legitimate grounds to remove the Fed governor has further supported the rally in gold... A key US jobs report due this Friday is expected to show signs of a weakening labour market, reinforcing the case for rate cuts. These factors are likely to sustain the bullish momentum. Moreover, declining property prices in China have limited domestic investors' options for preserving wealth, thereby increasing the appeal of gold,” he said.

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