UAE Gold Nears Dh500 as Global Uncertainty Drives Prices Up
<h3><strong>UAE Gold Inches Toward Dh500 as Global Turmoil Fuels Bullion Rally</strong></h3><p><strong>Dubai:</strong> Gold prices in the UAE are rising at a pace not seen in years, with 24-karat gold now trading just shy of the <strong>Dh500 per gram</strong> mark. On Monday, prices jumped by <strong>Dh9 in a single day</strong>, reflecting a global rush toward safe-haven assets amid heightened geopolitical uncertainty and growing optimism about U.S. interest rate cuts.</p><p>As of Monday evening, <strong>24K gold</strong> was priced at <strong>Dh493.25 per gram</strong>, compared to <strong>Dh484.25</strong> just a day earlier. The <strong>22K variety</strong> also surged, reaching <strong>Dh456.75</strong>, up from <strong>Dh448.25</strong> on Sunday. This means UAE consumers have witnessed an <strong>Dh80 rise per gram</strong> in less than two months — a steep climb that has both jewellers and investors on alert.</p><p>At the start of October, 24K gold traded at <strong>Dh466.75</strong>, and now, with only days into mid-October, the precious metal’s momentum shows no signs of slowing down.</p><h3><strong>Global Factors Behind the Gold Boom</strong></h3><p>On the international stage, gold prices have soared past <strong>$4,100 an ounce</strong>, marking another record high. Analysts point to a combination of <strong>U.S.-China trade tensions</strong>, <strong>rate-cut expectations</strong>, and <strong>economic uncertainty</strong> as the driving forces behind the surge.</p><p>As investors grow wary of volatile markets, many are turning to gold — historically viewed as a <strong>safe haven</strong> during financial instability. “When uncertainty spikes, gold shines,” said a market analyst. “Investors are seeking protection from inflation, market swings, and political risk — and gold is the ultimate hedge.”</p><p>Major financial institutions are quickly revising their forecasts upward. <strong>Bank of America</strong> now expects gold to average <strong>$4,400 an ounce by 2026</strong>, while <strong>Societe Generale</strong> predicts it could touch <strong>$5,000 an ounce</strong> before the end of 2026 — a figure that would have seemed far-fetched just a year ago.</p><h3><strong>Why Interest Rate Cuts Matter</strong></h3><p>Gold’s recent rally is also fueled by expectations of a <strong>U.S. Federal Reserve rate cut</strong>. When interest rates fall, traditional savings instruments and bonds yield lower returns, making non-interest-bearing assets like gold more attractive.</p><p>Money markets are currently pricing in a <strong>97% probability</strong> of a <strong>25-basis-point rate cut</strong> in the Fed’s next meeting later this month. Investors are betting that lower rates will boost liquidity and reduce the opportunity cost of holding gold.</p><p>Simply put — when cash loses its shine, gold gleams brighter.</p><h3><strong>Political Tensions Add to the Fire</strong></h3><p>Adding to the market’s nervousness are renewed tensions between <strong>Washington and Beijing</strong>. U.S. President <strong>Donald Trump’s recent tariff threats</strong> — followed by partial reversals — have unsettled investors once again. The ongoing negotiations over trade and technology continue to cast a shadow over global stability.</p><p>Compounding the issue, the <strong>U.S. government shutdown</strong>, now in its second week, has delayed the release of key economic indicators. This has created an information gap, forcing investors to rely more heavily on safe assets like gold.</p><p>Whenever politics, economics, and global confidence clash, gold typically benefits — and this time is no different.</p><h3><strong>Impact on UAE Buyers and Investors</strong></h3><p>For <strong>UAE residents</strong>, the sharp rise in prices presents a mixed picture. On one hand, long-term investors are celebrating the rally as validation of gold’s enduring value. On the other, jewellery buyers are feeling the pinch, as ornaments and wedding purchases become costlier by the day.</p><p>Jewellery retailers across Dubai and Sharjah have reported steady footfall, but fewer large-ticket purchases. Many buyers are choosing to wait, hoping for a price correction — though experts warn that the momentum could carry gold past <strong>Dh500 per gram</strong> very soon.</p><p>“Once the Dh500 barrier is broken, it could trigger another wave of buying from investors who see it as a breakout signal,” noted a UAE gold trader.</p><h3><strong>The Road Ahead</strong></h3><p>The coming weeks will be crucial. If global rate cuts materialize and trade uncertainty persists, gold could easily cross the symbolic <strong>Dh500 threshold</strong> and potentially climb higher. Analysts believe the combination of <strong>economic anxiety</strong>, <strong>policy shifts</strong>, and <strong>geopolitical strain</strong> could keep bullion elevated well into 2026.</p><p>For now, UAE buyers are watching the screens closely, weighing the perfect moment to act. Whether for investment or tradition, gold continues to hold an emotional and financial grip on the region.</p><p>At this pace, the <strong>Dh500 milestone</strong> may not just be near — it may be <strong>inevitable</strong>.</p>