Gold prices in Dubai maintained their strong upward trend on Thursday, following a worldwide rally that brought bullion prices above $5,500 for the first time. The increase in price brought 22K gold value in Dubai to exceed Dh600 per gram, marking this a historic milestone demonstrating rising demand for safe-haven assets during times of geopolitical conflict and market instability.
According to data from the Dubai Jewellery Group, Dubai gold rates climbed to fresh all-time highs across all major categories. The 24K gold price Dubai jumped Dh30.5 per gram to Dh666, marking a new record. The price of 22K gold increased by Dh28.25 to reach a new value of Dh616.75 per gram.
The other gold variants showed significant price increases, with 21K gold selling at Dh591.25 per gram, 18K gold at Dh506.75, and 14K gold at Dh395.25 per gram. The price increase occurred because of both international market movements and heightened investor interest in physical gold.
In international markets, gold crossed the $5,500 (20,198 AED) threshold for the first time in international market trading, which showed a price of $5549.75 per ounce (20,381 AED) on Thursday morning after an increase of 4.6%.
Analysts attribute the rally to strong safe-haven demand as investors seek protection from geopolitical risks and economic uncertainty. Gold prices have increased because investors expect the US Federal Reserve to also support gold’s upward momentum, reinforcing its appeal as a non-yielding asset.
The ongoing geopolitical developments have fueled the rallying movement. US President Donald Trump issued a warning to Iran, which stated that the country must return to negotiations or face potential military action.
The US has already deployed aircraft carriers to the Middle East, adding to market anxiety. Washington has also kept open the possibility of further military steps following its support for Israel during last month’s conflict involving Iranian nuclear and missile facilities.
Looking ahead, analysts are increasingly projecting gold prices could approach $6,000 (22,035 AED) this year, citing continued geopolitical uncertainty and the likelihood of looser monetary policy as key drivers shaping gold prices today and global markets alike.