Gold prices in Dubai have surged dramatically, reaching a new peak of Dh420 per gram on Tuesday, fueled by a continuous increase in global pricing. This uptrend has been influenced by factors such as trade disputes, geopolitical uncertainties, and significant purchases by central banks.
The global price of gold has soared to $3,500 per ounce, underscoring its appeal as a safe-haven asset, thereby overshadowing the performance of other metals.
In the Dubai market, the price of 24K gold climbed from Dh407.0 per gram on Monday morning to Dh409.25 by the afternoon, eventually rising to Dh412.0 in the evening. This upward trajectory persisted into Tuesday, with prices reaching Dh420.0 per gram before settling at Dh412.5 by Tuesday evening. This signifies an impressive increase of nearly Dh20 per gram in just 24 hours.
Similarly, the price of 22K gold increased from Dh376.75 per gram in the morning to Dh379.0 in the afternoon and further to Dh381.5 in the evening. On Tuesday morning, it surged over Dh7 per gram to Dh388.75, marking a total gain of Dh12 in just one day. By Tuesday evening, profit-taking lowered the price slightly to Dh382.25 per gram.
Gold Outshines Other Metals
The current surge in gold prices has caught significant attention, with experts noting that “Gold’s remarkable rise has shown no signs of slowing down this year.”
At the beginning of the year, gold traded at approximately $2,624.50 but skyrocketed to a highest value of $3,500.10 as of April 22, representing a notable year-to-date increase of 33.36%,” explained Vijay Valecha, the Chief Investment Officer at Century Financial.
This unusual increase is largely attributed to the tariff strategies implemented by the U.S. president and his critique of Federal Reserve Chair Jerome Powell.
According to commodities strategy chief Ole Hansen at Saxo Bank, the gold surge has also been driven by apprehensions regarding the U.S. economy, particularly with President Trump questioning the Federal Reserve’s independence and calling for rate cuts.
Hansen pointed out that the combination of thin trading conditions during the Easter holiday, along with a drop in the U.S. dollar and stock prices, contributed to the situation.
“As confidence wanes among traders in the U.S. and Asian buyers rush to acquire gold, it seems likely that the demand for gold will persist until there is more clarity on various issues, including tariffs and economic stability,” he noted.
Analysts attribute the recent price gains primarily to investors and institutions entering the market, influenced by a fear of missing out (FOMO) on the current rally.
“Gold’s extraordinary status as a safe haven, combined with FOMO-driven momentum, has rendered other metals, particularly silver, relatively unimpressive, with silver now trading at its lowest premium against gold since early 2020,” he added.
Gold Set to Reach $3,700
Several financial analysts and institutions have recently adjusted their gold price forecasts for the year to $3,500 per ounce, a target that was surprisingly achieved in a matter of weeks.
Vijay Valecha from Century Financial indicated that ongoing upward adjustments to gold price predictions are common amidst this relentless ascent.
“Current consensus predictions suggest that prices might hit $3,700 per ounce by year-end and could reach $4,000 by mid-2026. The current rally appears justifiable, as inflows into gold-backed ETFs are increasing, though still below 2020 levels,” he remarked.
Data from the World Gold Council highlights that gold-backed ETFs saw an inflow of 226.5 metric tons in the first quarter, amounting to $21.1 billion, the highest since the first quarter of 2022. By the end of March, total inflows had grown to 3,445.3 tons, nearing the highest figures since May 2023, yet remaining below the all-time peak of 3,915 tons from October 2020.