Prime Highlights:
- Gold prices in Dubai have crossed Dh450 per gram for the first time, with 21K gold surpassing Dh400 per gram.
- Experts say gold is benefiting from multiple factors, including central bank demand, geopolitical tensions, and its role as a safe-haven investment.
Key Facts:
- In the first half of 2025, central banks bought a net 410 tonnes of gold, continuing a record streak since 2022.
- Global spot gold is trading at $3,749 per ounce, reflecting rising investor confidence and strong demand.
Key Background:
Gold prices in Dubai have crossed Dh450 per gram for the first time, as the precious metal continues to hit record highs almost daily. Data from the Dubai Jewellery Group showed that 24K gold reached Dh451.75 per gram before settling at Dh451 on Tuesday morning. Elsewhere, 22K, 21K, and 18K variants also reached new heights at Dh418.5, Dh401, and Dh344/per gram. Notably, 21K gold surpassed Dh400 per gram for the first time in Dubai.
Global spot gold was trading at $3,749.32 per ounce, up 0.24 percent, reflecting strong international demand. Experts attribute the surge to a combination of market factors. Ahmad Assiri, research strategist at Pepperstone, said gold is performing very well and continues to attract investors because of a weaker dollar, strong central bank demand, and its role as a safe investment.
According to Assiri, every market pullback over the past month has been quickly absorbed by both institutional and speculative flows, demonstrating the depth of investor confidence.
Linh Tran, market analyst at xs.com, noted that gold is currently benefiting from several supportive factors, including macroeconomic conditions, monetary policies, geopolitical tensions, and central bank reserve strategies. “Gold’s temporary all-time high of around $3,760 per ounce reflects growing investor confidence in its role as a safe-haven asset and a long-term store of value,” Tran said.
Economic developments have also played a role. The Federal Reserve cut interest rates by 25 basis points in September 2025, hinting that the long period of rate hikes may be ending. According to Chairman Jerome Powell, future interest rates will be determined by economic figures, particularly inflation and employment.
The central banks are increasing the demand for gold. Their 410-tonne gold purchase in the first half of 2025 has been a record since 2022. Gold is an attractive, safe investment in the Middle East, despite tensions between Russia and NATO.
With prices reaching new highs, gold is attracting investors and financial markets, making it one of the most-watched commodities in Dubai and around the world.
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