Gold prices in Dubai have reached unprecedented levels, with 24-karat gold soaring to Dh521.75 per gram and 22-karat gold climbing to Dh483 by Monday evening, marking a significant increase from Dh510 and Dh472 earlier in the day. This surge follows a global rally, with the spot price of gold rising over 2% to approximately $4,346.8 per ounce.
The recent spike in gold prices is attributed to several global factors:
- Trade Tensions: Ongoing trade disputes between major economies have heightened market uncertainty, prompting investors to seek safe-haven assets like gold.
- Interest Rate Expectations: Anticipation of interest rate cuts by central banks has diminished the appeal of interest-bearing assets, making gold more attractive.
- Banking Sector Concerns: Reports of financial instability in certain banking institutions have further fueled demand for gold as a stable investment.
Despite the record-high prices, consumer demand in Dubai remains robust. Jewellers report increased foot traffic, with many buyers opting for lightweight jewellery and gemstone-adorned pieces to mitigate the impact of elevated gold prices.
As global economic uncertainties persist, experts suggest that gold may continue to be a favored investment choice, potentially leading to further price increases.