Dubai gold prices near record highs as 22k hits Dh407.25 per gram
Gold Prices in Dubai Stay Elevated as Global Rally Continues
Dubai: Gold prices in Dubai remained high on Thursday morning, keeping 22-karat rates above Dh400 per gram for the fifth consecutive day. According to the Dubai Gold & Jewellery Group, 22k gold opened at Dh407.25 per gram, slightly higher than Wednesday’s Dh406. Meanwhile, 24k gold touched Dh440 per gram, maintaining momentum alongside international markets.
Global Gold Nears Record Highs
On global markets, gold traded at $3,642 per ounce, just $32 below its all-time peak reached earlier this week. The rally follows a surprise drop in U.S. producer prices, strengthening expectations that the Federal Reserve may cut interest rates in upcoming policy decisions.
Analysts expect at least two rate cuts before the end of 2025, with the first potentially next week. Lower U.S. interest rates typically weaken the dollar and reduce bond yields, boosting gold’s appeal as a safe-haven asset.
Rising Prices Across Asia
India is also seeing higher gold rates. On Thursday:
24k gold: ₹11,051 per gram
22k gold: ₹10,130 per gram
Strong festive demand and rising global prices are pushing rates higher across South Asia.
Gold’s Strong Rally in 2025
Gold has surged nearly 40% this year, marking one of its strongest rallies in decades. Analysts cite several contributing factors:
Central bank buying: Increased gold reserves worldwide
Geopolitical tensions: Boosting safe-haven demand
Rate cut expectations: Anticipation of U.S. Fed monetary easing
Weak bond yields: Investors shifting funds from bonds into gold
"Gold is benefiting from a perfect storm of macroeconomic factors — from central bank demand to monetary easing signals," said a Dubai-based bullion analyst.
Could Gold Reach $5,000?
Some long-term forecasts suggest gold could hit $5,000 per ounce if global uncertainties persist and demand continues to climb. However, analysts warn of possible short-term pullbacks, especially if the U.S. economy strengthens or the Fed delays cuts.
Impact on UAE Shoppers
For buyers in the UAE, higher rates mean more expensive jewellery, with consumers paying nearly Dh40 extra per gram compared to earlier this year.
Current retail prices:
22k gold: Dh407.25 per gram
24k gold: Dh440 per gram
21k gold: Dh400.25 per gram (approx.)
18k gold: Dh343 per gram (approx.)
Despite higher prices, demand remains strong, driven by weddings, festive seasons, and gold’s role as a long-term investment and inflation hedge.
"Even with record-high prices, gold is part of cultural traditions, so sales haven’t dropped off," noted a Dubai jeweller.
What’s Next?
The coming week will be crucial, as the U.S. Federal Reserve’s policy decision could impact global bullion markets.
If the Fed cuts rates: Gold may stay above $3,600 and could retest all-time highs.
If the Fed takes a cautious stance: The rally may slow temporarily.
UAE buyers and investors should prepare for continued high gold prices, with potential further increases amid global economic and political uncertainties.