Dubai gold prices soar to record highs as US shutdown fears fuel global rally
<p>Gold prices in Dubai have surged to <strong>historic highs</strong>, as escalating fears of a <strong>US government shutdown</strong> and expectations of an upcoming <strong>Federal Reserve rate cut</strong> drive investors worldwide toward the safety of the yellow metal.</p><p>As of Monday morning, <strong>22-karat gold</strong> in Dubai was trading at <strong>Dh437.25 per gram</strong>, while <strong>24-karat</strong> touched <strong>Dh472.25 per gram</strong> — the highest local levels ever recorded. On international markets, spot gold soared to <strong>$3,920.63 an ounce</strong> before settling slightly lower around <strong>$3,905.54</strong>.</p><p>The latest rally underscores gold’s role as a haven during global uncertainty, particularly as the US economy grapples with fiscal and policy turbulence.</p><h4><strong>Global turmoil boosts bullion demand</strong></h4><p>The dramatic upswing in gold comes amid mounting investor anxiety over a potential <strong>US government shutdown</strong>, which has already delayed the release of key economic data such as the September payroll report. Without clarity on employment or inflation trends, markets are leaning heavily on private data — further amplifying volatility across global assets.</p><p>In response, traders have increased bets that the <strong>Federal Reserve</strong> will cut interest rates by <strong>25 basis points</strong> at the end of October. The prospect of lower rates — which reduce the opportunity cost of holding non-yielding assets like gold — has strengthened the metal’s appeal.</p><blockquote><p>“When uncertainty rises and real yields fall, gold inevitably shines brighter,” said a senior analyst at Emirates Bullion Exchange. “The combination of fiscal risk, softer US data, and central bank demand has created the perfect storm for a sustained rally.”</p></blockquote><h4><strong>Local markets feel the heat</strong></h4><p>For shoppers and jewellers in Dubai — one of the world’s leading gold trade hubs — the surge has been both a boon and a challenge. Retail prices have reached record highs, prompting buyers to delay purchases or switch to lighter jewellery designs to manage costs.</p><p>Jewellery retailers in Deira Gold Souk and major malls reported a noticeable <strong>slowdown in consumer demand</strong>, even as investment buying remains steady.<br>“Many customers are adopting a wait-and-watch approach,” said a Dubai-based gold trader. “They expect prices to cool, but if the US crisis drags on, gold could easily breach the $4,000 mark.”</p><p>Meanwhile, <strong>Indian gold prices</strong> have also risen sharply, with <strong>24-karat gold</strong> priced at <strong>₹11,940 per gram</strong> and <strong>22-karat gold</strong> at <strong>₹10,945</strong>. The surge has hit wedding-season budgets across India, a key destination for UAE gold exports.</p><h4><strong>Central banks drive long-term rally</strong></h4><p>Gold’s remarkable <strong>50% rally in 2025</strong> has been fuelled not only by retail and institutional investors but also by <strong>central banks</strong> across Asia, the Middle East, and Africa. These institutions have been <strong>boosting gold reserves</strong> as part of efforts to <strong>diversify away from US dollar assets</strong> and hedge against geopolitical risks.</p><p>According to the <strong>World Gold Council</strong>, central bank purchases in the first three quarters of the year have already surpassed last year’s totals, underscoring the growing confidence in gold as a strategic asset.<br>Analysts at <strong>Goldman Sachs</strong> and <strong>HSBC</strong> predict that the metal could <strong>cross $4,000 an ounce</strong> in the coming months if rate cuts and fiscal uncertainties persist.</p><h4><strong>Outlook: More upside ahead</strong></h4><p>With the US fiscal standoff unresolved and inflation pressures still uncertain, market sentiment remains firmly in gold’s favour. Analysts warn that any <strong>delay in resolving the US budget impasse</strong> or a <strong>weaker dollar trend</strong> could further fuel demand for safe-haven assets.</p><p>In Dubai, traders expect <strong>continued price stickiness</strong> and limited downside movement in the short term. Many believe that even a minor pullback would be viewed as a <strong>buying opportunity</strong> for investors seeking long-term protection.</p><blockquote><p>“The fundamentals are all aligned — geopolitical tension, monetary easing expectations, and high liquidity,” said another trader. “Gold may briefly consolidate, but the broader trend still points upward.”</p></blockquote><h3><strong>Key Highlights for Buyers</strong></h3><p><strong>22K gold:</strong> Dh437.25 per gram</p><p><strong>24K gold:</strong> Dh472.25 per gram</p><p><strong>Global spot price:</strong> $3,905.54 per ounce</p><p><strong>Potential upside:</strong> Analysts see $4,000 as the next resistance</p><p><strong>Local impact:</strong> Jewellery demand cools as investment interest stays firm</p><p>As Dubai continues to mirror global trends, gold’s rally reflects not just rising prices — but growing unease over the world’s economic outlook. Whether for investors, jewellers, or shoppers, <strong>the metal’s glitter now carries a higher premium than ever before.</strong></p>