Dubai gold prices surge above Dh405 amid global safe-haven demand
Residents rush to sell gold ahead of summer travel expenses
DUBAI’s gold prices surged on Tuesday, with 24-carat gold climbing to Dh405.31 per gram – a gain of Dh0.81 – amid escalating global safe-haven demand.
The rally follows threats by US President Donald Trump to impose 100 percent tariffs on Russia and fresh inflation warnings from the US Federal Reserve. Spot gold prices also neared $3,350 an ounce, intensifying global interest in the yellow metal.
The impact of global developments is visible in Dubai’s retail market, with 22-carat gold rising to Dh375.26, 21-carat at Dh358.19, and 18-carat gold reaching Dh307.02 per gram. US gold futures gained 0.31 percent to $3,370.30 as of early Tuesday trading.
Shift in selling trend
With gold prices hovering near all-time highs, UAE residents are opting to sell their jewellery for straight cash rather than wait until reaching their home countries. The Dh375 mark for 22-carat gold is just Dh8.75 below Dubai’s record high, making it an attractive time to liquidate gold assets, particularly before the summer travel season.
Retailers in Dubai reported a noticeable shift, with some residents choosing to convert their gold into dirhams, using the proceeds for local expenses or to transfer funds abroad. A stronger US dollar has also made currency exchange more favourable for Asian expatriates.
High demand, lower buying
While the gold selling trend rises, the current retail gold buying season appears to have cooled following the latest price spike. Smaller retailers in Dubai Gold Souq and surrounding areas are witnessing more sellers than buyers. The current gold price rally has triggered a response similar to previous spikes, including those during the peak of the COVID-19 pandemic.
Global uncertainty lingers
Geopolitical tensions and economic signals remain key drivers. Traders await the US Consumer Price Index (CPI) data, which may further sway interest rate expectations and gold prices. For now, gold remains a key safe-haven asset, and its price trajectory continues to shape shopping behaviour across Dubai.