Gold prices in Dubai climbed to fresh all time highs this week, making jewellery purchases and savings more expensive while reshaping financial decisions for residents and expatriates.
As of Wednesday morning, 24 karat gold was trading near Dh542 per gram, while the widely preferred 22 karat variety crossed Dh500, a level breached for the first time. Just a month earlier, prices were significantly lower, highlighting the speed and scale of the rally.
The surge mirrors global bullion markets, where spot gold pushed beyond $4,500 an ounce amid escalating geopolitical tensions and expectations of future interest rate cuts by the US Federal Reserve. Analysts point to ongoing instability in Eastern Europe, the Middle East, and renewed tensions involving energy shipments as key drivers reinforcing gold’s role as a safe haven asset.
Market strategists also note that a softer US dollar has added momentum to the rally, with traders pricing in further monetary easing despite the Federal Reserve holding rates steady earlier this year.
Silver and platinum have followed gold higher, reaching levels not seen in decades, further underscoring strong demand for precious metals globally.
For UAE expatriates, the timing of the gold rally has coincided with continued weakness in several Asian currencies. The Indian rupee, Pakistani rupee, and Philippine peso remain near multi year lows against the dirham, giving overseas workers greater value on remittances but also raising questions about whether to remit funds now or hold out for further moves.
Exchange houses report that many families are adopting a split strategy, sending part of their funds immediately while waiting on the remainder in case currency trends extend. At the same time, higher gold prices are prompting buyers to delay jewellery purchases or shift toward lighter designs.
With US economic data due in the coming days, analysts say further softness could keep gold supported, though volatility remains elevated across currency and commodity markets.
