Dubai gold prices near record highs as 22k hits Dh407.25 per gram
<h3>Gold Prices in Dubai Stay Elevated as Global Rally Continues</h3><p><strong>Dubai:</strong> Gold prices in Dubai remained high on Thursday morning, keeping <strong>22-karat rates above Dh400 per gram</strong> for the fifth consecutive day. According to the <strong>Dubai Gold & Jewellery Group</strong>, 22k gold opened at <strong>Dh407.25 per gram</strong>, slightly higher than Wednesday’s Dh406. Meanwhile, <strong>24k gold touched Dh440 per gram</strong>, maintaining momentum alongside international markets.</p><h3>Global Gold Nears Record Highs</h3><p>On global markets, gold traded at <strong>$3,642 per ounce</strong>, just $32 below its all-time peak reached earlier this week. The rally follows a <strong>surprise drop in U.S. producer prices</strong>, strengthening expectations that the <strong>Federal Reserve</strong> may cut interest rates in upcoming policy decisions.</p><p>Analysts expect at least <strong>two rate cuts before the end of 2025</strong>, with the first potentially next week. Lower U.S. interest rates typically <strong>weaken the dollar</strong> and reduce bond yields, boosting gold’s appeal as a <strong>safe-haven asset</strong>.</p><h3>Rising Prices Across Asia</h3><p>India is also seeing higher gold rates. On Thursday:</p><p><strong>24k gold:</strong> ₹11,051 per gram</p><p><strong>22k gold:</strong> ₹10,130 per gram</p><p>Strong festive demand and rising global prices are pushing rates higher across South Asia.</p><h3>Gold’s Strong Rally in 2025</h3><p>Gold has surged nearly <strong>40% this year</strong>, marking one of its strongest rallies in decades. Analysts cite several contributing factors:</p><p><strong>Central bank buying:</strong> Increased gold reserves worldwide</p><p><strong>Geopolitical tensions:</strong> Boosting safe-haven demand</p><p><strong>Rate cut expectations:</strong> Anticipation of U.S. Fed monetary easing</p><p><strong>Weak bond yields:</strong> Investors shifting funds from bonds into gold</p><p><i>"Gold is benefiting from a perfect storm of macroeconomic factors — from central bank demand to monetary easing signals,"</i> said a Dubai-based bullion analyst.</p><h3>Could Gold Reach $5,000?</h3><p>Some long-term forecasts suggest <strong>gold could hit $5,000 per ounce</strong> if global uncertainties persist and demand continues to climb. However, analysts warn of possible <strong>short-term pullbacks</strong>, especially if the U.S. economy strengthens or the Fed delays cuts.</p><h3>Impact on UAE Shoppers</h3><p>For buyers in the UAE, higher rates mean <strong>more expensive jewellery</strong>, with consumers paying <strong>nearly Dh40 extra per gram</strong> compared to earlier this year.</p><p>Current retail prices:</p><p><strong>22k gold:</strong> Dh407.25 per gram</p><p><strong>24k gold:</strong> Dh440 per gram</p><p><strong>21k gold:</strong> Dh400.25 per gram (approx.)</p><p><strong>18k gold:</strong> Dh343 per gram (approx.)</p><p>Despite higher prices, <strong>demand remains strong</strong>, driven by weddings, festive seasons, and gold’s role as a <strong>long-term investment and inflation hedge</strong>.</p><p><i>"Even with record-high prices, gold is part of cultural traditions, so sales haven’t dropped off,"</i> noted a Dubai jeweller.</p><h3>What’s Next?</h3><p>The coming week will be crucial, as the <strong>U.S. Federal Reserve’s policy decision</strong> could impact global bullion markets.</p><p><strong>If the Fed cuts rates:</strong> Gold may stay above $3,600 and could retest all-time highs.</p><p><strong>If the Fed takes a cautious stance:</strong> The rally may slow temporarily.</p><p>UAE buyers and investors should prepare for <strong>continued high gold prices</strong>, with potential further increases amid global economic and political uncertainties.</p>