UAE Gold Prices Inch Higher As Precious Metal Breaks Records 3 Days In A Row

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Gold is showing no signs of slowing down as the yellow metal continues to break new records for the third day in a row.

When markets opened on Wednesday, 24K gold stood at Dh542. In the last one week, prices have increased by more than Dh20 per gram. The rates of 22K, 21K,18K, and 14K stood at Dh502, Dh481.25, Dh412.50 and Dh321.75, marking a marginal increase from the prices when markets opened on Tuesday.

Spot gold prices stood at $4,496.42 at 10am, up 0.41 per cent from Tuesday.

This week, gold broke new highs twice in a day and gained Dh10 in 24 hours to continue its dream run. Meanwhile, silver also rocketed to record highs of $72.37, up 2.02 per cent from Tuesday.

According to Samer Hasn, Senior Market Analyst at xs, gold extended a rally after a period of corrective and sideway moves on the back of geopolitical issues.

“The move unfolded as geopolitical risk resurfaced and positioning shifted decisively toward safety, even as traditional headwinds from bond market failed to bite,” he said.

“Renewed geopolitical tension played a clear role. From Latin America, where a major military US intervention might take place soon, to the Middle East, with rising rhetoric around a possible Israel-Iran escalation placing Iran's ballistic missile program back in focus.”

He said that monetary expectations are also doing some heavy lifting.“Gold is trading higher as markets increasingly price additional Federal Reserve easing early next year, following softer inflation and labor signals,” he said.“The looser policy expectations reduce the opportunity cost of holding non-yielding assets, a dynamic that has lifted not only gold but also silver and parts of the broader commodity complex.”

According to him, gold is holding strong despite some market anomalies.“US 10-year Treasury yields are hovering near their highest levels since September, while bond market volatility as measured by the MOVE index has pushed deeper toward lows last seen in 2021,” he said.“Under normal conditions, that mix would pressure bullion, yet gold continues to climb, signaling that this rally is not being driven by bond market mechanics. With risk appetite uneven and conviction thin, gold has benefited from being one of the few assets offering clarity of purpose.”

He added that North America extended its inflow streak to six months, adding $1 billion in November as higher prices, intensifying Fed cut expectations, and renewed geopolitical risks supported demand.“If these inflows persist, gold's breakout may prove less symbolic and more structural in the weeks ahead,” he said.

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