Dubai gold rates surge over Dh2 as global prices near two-month high
Banks promote gold accounts as jewellery costs rise
DUBAI: Gold prices in Dubai began the week on a high note, mirroring the surge in global markets driven by heightened tensions in the Middle East and speculation around US monetary policy.
The price of 24-carat gold in the emirate jumped over Dh2 to reach Dh414.15 per gram, its highest in recent weeks, while other variants also saw notable gains. As of Monday, 22-carat gold in Dubai traded at Dh383.45, while 21K stood at Dh366.01. The more affordable 18K gold also saw an uptick, climbing to Dh313.72.
The overall rise corresponds with global spot gold prices that rose by 0.4% to $3,447.07 per ounce, currently trading just above $3,430. US gold futures also saw a similar increase, hovering above $3,450.
Global drivers
The international rally is largely attributed to escalating regional conflicts, prompting investors to seek safety in gold. Additionally, the upcoming US Federal Reserve meeting, set for June 17-18, has markets on edge. While the Fed is expected to maintain its interest rate range of 4.25–4.50%, futures trading suggests a high probability of rate cuts by September, especially after the release of cooling inflation data last week.
Banking on gold
With prices holding at historically high levels, banks in the UAE are intensifying efforts to attract investors into gold savings accounts. These digital platforms offer consumers an alternative to buying physical jewellery, which often includes additional making charges. Emirates NBD and RAKBank are among those offering flexible gold investment options with minimum entry points as low as Dh500.