Dubai gold crosses Dh500 mark as global rates hit $4,179.48
Silver, platinum and palladium gain as investors seek safe assets
DUBAI – Gold prices in Dubai surged on Tuesday, mirroring global highs as bullion touched new records above $4,100 per ounce.
According to Dubai Jewellery Group, the price of 24-carat gold rose to Dh502.50 per gram, up Dh13.75 from Monday’s rate of Dh488.75. The 22-carat variety increased to Dh465.25, while 21-carat and 18-carat gold stood at Dh446.00 and Dh382.25, respectively – reflecting one of the sharpest single-day rises of the month.
The upward swing comes as gold continues its eight-week rally, fuelled by global economic uncertainty, potential US Federal Reserve rate cuts, and escalating trade tensions between Washington and Beijing.
Global rally continues
Internationally, spot gold climbed 1.7 percent to a record $4,179.48 per ounce as of Tuesday morning, while US gold futures rose 1.3 percent to $4,187.50. The precious metal has now gained more than 57 percent year-to-date, driven by strong central bank purchases and inflows into gold-backed exchange-traded funds. Analysts expect the price to remain buoyant, with forecasts suggesting potential movement toward $4,200 to $4,250 within the next year.
Silver followed suit, hitting a new peak of $53.60 per ounce, up 2.2 percent on the day. Platinum rose to $1,677.00, and palladium advanced to $1,505.75, rounding off a day of robust performance across the precious metals sector.
Rate cuts and tariffs
The momentum in gold markets has been reinforced by expectations of U.S. interest rate reductions, with traders pricing in a 99 percent chance of a 25-basis-point cut in October and 94 percent in December, according to CME FedWatch data. The prospect of lower rates makes non-yielding assets like gold more attractive to investors.
Further driving sentiment is the renewed strain in US-China trade relations. Beijing’s announcement of expanded rare-earth export controls prompted US President Donald Trump to threaten 100 percent tariffs on Chinese goods from November 1, intensifying global risk aversion. The continuing US government shutdown, now in its 13th day, has added to concerns over economic stability.
Safe-haven demand
The confluence of economic slowdown fears, inflationary pressures, and policy uncertainty has bolstered safe-haven demand for gold and silver. With central banks diversifying away from the US dollar and geopolitical risks rising, Dubai’s retail gold market continues to mirror international momentum – keeping investors’ eyes on bullion as one of 2025’s most resilient assets.