Gold Prices Hit Record High in Dubai as 24K Surpasses Dh405 per Gram Amid Global Market Concerns

The surge in gold prices reflects growing geopolitical tensions and fears over U.S. monetary policy, with analysts predicting further price increases for the precious metal in 2025.

Gold prices in Dubai reached an unprecedented high on Monday morning, with 24K gold trading at Dh405.25 per gram, setting a new record. The Dubai Jewellery Group’s data revealed that 22K gold was priced at Dh375.25 per gram, while 21K and 18K variants were trading at Dh360.0 and Dh308.5 per gram, respectively.

This surge in gold prices is in line with the trend observed across global markets, particularly in Asia, where gold prices touched a record $3,370.17 per ounce. The sharp rise in prices has been fueled by a combination of factors, including growing concerns over escalating geopolitical tensions and the ongoing market volatility sparked by U.S. President Donald Trump’s criticism of the Federal Reserve’s policies. The uncertainty around tariffs and Trump’s potential influence on U.S. monetary policy has further spooked investors, pushing them toward gold as a safe haven.

Charu Chanana, the chief investment strategist at Saxo Bank in Singapore, commented that markets were already on edge due to geopolitical instability. The addition of U.S. political pressure on the Federal Reserve has only compounded fears of further market uncertainty. “Any signs of political pressure on monetary policy could undermine the Fed’s independence and complicate the path ahead for interest rates just as investors are looking for stability amid global volatility,” Chanana noted.

As concerns about U.S. economic policies grow, Saxo Bank and Citi Research have revised their 2025 forecast for gold, predicting that the precious metal could reach $3,500 per ounce. This reflects growing expectations that gold will continue to benefit from a potential reduction in U.S. interest rates, which would make holding gold more attractive due to the metal’s lack of interest-bearing yield.

The current state of the market suggests that gold prices may continue to rise, with the futures market pricing in the possibility of a 75 to 100 basis point rate cut by the Federal Reserve before the end of the year. Lower interest rates would reduce the opportunity cost of holding gold, providing further support to its price.

With the global economic landscape in flux and geopolitical tensions rising, investors are increasingly looking to gold as a hedge against market uncertainties, reinforcing its status as a safe haven asset in times of crisis.