UAE: Gold Hits Fresh Record Highs as Prices Jump Over Dh10 in 24 Hours

Gold prices in the UAE surged to fresh record highs on Tuesday, rising by more than Dh10 in just 24 hours as investors flocked to safe-haven assets amid mounting global uncertainty. When markets opened on December 23, the price of 24K gold jumped to Dh540 per gram, up sharply from Dh529.75 recorded on Monday morning.

Other gold variants also saw notable increases, with 22K gold priced at Dh500, 21K at Dh479.50, 18K at Dh411, and 14K at Dh320.50. In international markets, spot gold prices climbed to $4,475.44 by 10:30am, nearly 1 per cent higher than the previous day. Silver also extended its rally, surpassing recent historic highs to trade at $69.43.

Vijay Valecha, Chief Investment Officer at Century Financial, described the current rally as one of the strongest gold upswings seen since the 1970s. He noted that the surge reflects gold’s dual role as both a safe-haven asset and an inflation hedge, though current global conditions are pushing investors more strongly toward risk aversion. “The safe-haven characteristic is currently outshining its inflation-hedging role,” he said.

Valecha explained that heightened geopolitical tensions, ongoing trade disputes, and broader economic uncertainty have driven significant capital flows into precious metals, particularly gold. These factors have contributed to the rapid pace of price gains seen over the past several sessions.

Gold demand dynamics in the UAE differ significantly from those in many other countries due to the nation’s status as a global trading hub. While consumer buying continues, Valecha noted that buyers are exercising caution. Across the Middle East, total jewellery demand reached 33.8 tonnes in the third quarter, with the UAE accounting for roughly one-fifth of regional demand, ranking second only to Saudi Arabia.

The slowdown in jewellery demand is part of a broader global trend. In the United States, jewellery demand fell to 24.6 tonnes in the third quarter, marking one of its weakest performances on record. However, bar and coin demand in the UAE remained relatively resilient at around 3.4 tonnes during the same period. While slightly lower year-on-year, the decline was far less severe than in developed markets, where profit-taking significantly reduced investment demand.

Valecha added that a substantial portion of gold purchased in Dubai is exported to South Asia, Africa, and neighbouring regions, reinforcing the UAE’s strategic role in global gold flows. “In simple terms, the UAE behaves like a developed market in consumption, but like an emerging-market hub in importance quietly central, highly liquid, and structurally resilient,” he said.