Dubai gold prices gain Dh115 per gram in a month after reaching record high globally

Gold prices shot to a new record high in the UAE and globally on Wednesday evening, gaining over Dh115 per gram within a month in Dubai as investors rush to safe-haven metal amidst global uncertainties.

The 24K gold price skyrocketed to Dh635.5 per gram in Dubai, rising Dh115.5 year-to-date. This means the gold prices in the UAE have gained more than half in the first month of this year compared to what they achieved in the whole of last year.

In 2025, the 24K gold price closed at Dh520 per gram on December 31, 2025.

The rally took the other variants of precious metal also to a new record high as 22K, 21K, 18K, and 14K were trading at Dh588.5, Dh564.25, Dh483.5, and Dh377.25 per gram, respectively, on Wednesday evening.

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Spot gold surpassed the $5,300 milestone on Wednesday afternoon, before settling at $5,288.26 per ounce at 8pm UAE time.

Alex Kuptsikevich, chief market analyst at FxPro, said the collapse of the USD index allowed gold to break above $5,300 per ounce for the first time in history.

“Precious metals act as a politically neutral asset. They react to White House policy but are not dependent on it in the same way as stocks, bonds, and the US dollar. As a result, investors are increasing their gold holdings to hedge against political risks,” he said.

“Gold got support from both capital flights from the US and capital outflows from the cryptocurrency market. Many believed that US President Donald Trump's promise to turn America into the world crypto capital would cause Bitcoin to break record after record. In fact, it has become an asset dependent on White House policy,” added Kuptsikevich.

Strong demand is supporting gold prices, driven by steady central bank buying and more investors choosing non-dollar assets. Although speculation has grown and short-term price drops are possible due to overbought conditions, the overall trend remains positive.

According to Vijay Valecha, chief investment officer, Century Financial, ongoing geopolitical uncertainty, a weaker dollar, and policy risks are driving demand for safe-haven assets.

“Geopolitical risks remain high, with new trade tensions between the US, Nato allies, and Canada, stalled Russia-Ukraine peace talks, and ongoing tariff uncertainty. These issues have strengthened gold’s appeal as a hedge against economic shocks, bond market swings, and inflation. Meanwhile, US consumer confidence has dropped to its lowest level in years, increasing concerns about the economy,” said Valecha.