Gold prices in the UAE have soared to record highs, climbing more than Dh12 over the past week as international bullion markets blaze ahead. On Tuesday morning, 22-karat gold opened at Dh430 per gram, up nearly Dh4 from Monday, while 24-karat reached Dh464.25. Global gold breached $3,800 per ounce, fueling investor demand.
Gold first touched record levels in Dubai last Tuesday—when 24K hit Dh452.25 and 22K Dh418.75. Analysts say the rally is being driven by expectations of future interest rate cuts, U.S. political risk, and safe‑haven buying amid macro uncertainty. Technically, prices have broken past the $3,791 per ounce high reached on September 23, reinforcing a bullish setup. The 4-hour chart shows a bull flag breakout, though with RSI in overbought territory, some consolidation could follow.
“The rally is being driven by heightened odds of further interest rate cuts later this year, especially after the Fed’s preferred inflation metric, the Core PCE Price Index, came in line with expectations at 2.9% on Friday. Additionally, increasing trade uncertainty from a fresh round of tariffs by Donald Trump on imported goods, such as drugs, trucks, and furniture, along with a risk of a US government shutdown, added to the safe-haven demand for the yellow metal. All eyes will be on the numerous speeches from Federal Reserve officials scheduled throughout the week, along with the highly anticipated non-farm payrolls report on Friday, both key factors expected to influence Gold prices in the days ahead,” shared Vijay Valecha, Chief Investment Officer, Century Financial.
Even oil prices inched upward in early trading during the European session on Monday, extending last week’s gain of over 4%. Both WTI and Brent rose to their highest levels since August 1 as Ukraine struck Russia’s energy infrastructure and the U.S. reported an unexpected drawdown in inventories. So far, oil markets have absorbed the additional barrels produced by OPEC. However, further gains could be capped if global supply rises.
Iraq has resumed oil exports from Kurdistan after a 2.5-year halt, which could boost international supply by an estimated 190K barrels per day. Moreover, OPEC+ is expected to hike production again in November, exacerbating concerns about a supply glut. Nevertheless, barring Saudi Arabia, most OPEC member countries have reached their production ceilings, which means the planned October hike and potential November boost could end up being lower than previously announced.
