Prime Highlights:
- Dubai gold prices continue to rise, moving closer to the Dh400 per gram milestone, signaling strong global demand.
- Shoppers in the UAE are showing resilience by adapting to higher prices through installments and digital gold investments.
Key Facts:
- The price of 22K goldin Dubai climbed to 25 per gram, up from Dh376 just last week.
- In the global market, gold touched $3,508 per ounce, strengthening forecasts that it could reach $3,600 sooner than expected.
Key Background:
Dubai’s gold market continues to witness record-breaking highs, with prices climbing steadily over the past week. The cost of 22K gold has reached Dh391.25 per gram, up from Dh376 just eight days ago, bringing it closer to the psychological Dh400 mark that has never been seen before in the local market.
In the global market, gold crossed the $3,500 per ounce mark, reaching as high as $3,508 before easing back to about $3,496. Analysts remain confident that the momentum will persist, with forecasts suggesting the metal could touch $3,600 per ounce sooner than anticipated. “Gold has the drivers in place to sustain this rally,” said Chris Weston, Head of Research at Pepperstone consultancy, pointing to strong interest from Chinese traders and ongoing economic uncertainties in the US.
As gold becomes more expensive, buyers in the UAE are adjusting their purchase habits rather than giving up on buying completely. Many are turning to 12-month installment plans, where they now pay more each month. For example, someone who started with Dh1,000 a month is now paying Dh2,000 or even Dh3,000 to get the same amount of gold.
Retailers also see more people buying lighter jewellery or choosing digital gold, which lets buyers purchase smaller amounts at affordable prices through online platforms. These options are keeping demand steady, even as prices remain high.
Much of the movement in gold is being linked to global events. Investors are closely watching upcoming announcements on the US economy and the Federal Reserve meeting scheduled for mid-month, both of which are expected to influence the metal’s next direction.
“Every day that gold holds above $3,500 strengthens its case for another upward move,” noted a bullion analyst, adding that potential political and economic uncertainties in the US could provide further support.
With momentum on its side, gold is reaffirming its role as a safe-haven asset, and UAE shoppers, while paying more, are showing resilience by adapting to new ways of investing in the precious metal.
