Gold prices in Dubai surged on Tuesday, reaching record levels as investors reacted to growing global economic uncertainty.
24K gold rose Dh5.25 per gram to Dh466, up from Dh460.75 on Monday. Similarly, 22K gold climbed Dh4.5 to Dh431.25 per gram. The prices for 21K and 18K opened at Dh413.75 and Dh354.5 per gram, respectively.
Spot gold also increased internationally, trading at $3,864.39 per ounce, reflecting nearly a 1% gain. Analysts link the surge to fears of a potential US government shutdown and expectations of further interest rate cuts.
Ahmad Assiri, a market strategist at Pepperstone, noted that previous US shutdowns, including the 16-day 2013 closure and the 35-day 2018-2019 shutdown, had negatively impacted economic growth. “Prolonged deadlock can disrupt key services and official data, affecting markets and investor confidence,” he explained.
Gold prices are benefiting not only from speculation but also from strong structural demand. Assiri added, “Selling gold now can be costly. Any profit-taking is quickly absorbed, and short-term fatigue may emerge, but further gains remain possible.”
Investors are increasingly turning to gold as a safe-haven asset. The combination of US political uncertainty, potential fiscal delays, and global economic concerns has strengthened demand for precious metals.
Market analysts suggest that gold prices may continue to see volatility as investors monitor the US Congress and global economic indicators closely. Dubai, as a key regional gold market, is particularly sensitive to these shifts in demand and global market sentiment.
As economic uncertainty persists, gold prices are expected to remain a preferred investment for cautious investors seeking protection against market instability.
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