Dubai, UAE – The gold rally showed no signs of slowing on Wednesday as prices in Dubai surged to fresh record highs for the second consecutive day, driven by global economic uncertainties and expectations of monetary easing by the US Federal Reserve.
According to the Dubai Jewellery Group, 24K gold opened at Dh426.0 per gram, up from Dh424.25 at Tuesday’s close, marking a new all-time high. Other popular variants also gained ground, with 22K at Dh394.5, 21K at Dh378.25, and 18K at Dh324.25 per gram.
Meanwhile, spot gold was trading at $3,533.24 per ounce, up 0.15% at 9:30 am UAE time.
22K Gold Could Cross Dh400 Soon
Analysts note that if the upward trend continues without major profit-taking, 22K gold could soon break the Dh400 per gram mark, a key psychological level for Dubai’s retail jewellery market.
What’s Driving the Gold Rally?
Market analyst Linh Tran of XS.com highlighted that gold’s rally is supported by multiple macroeconomic factors.
“After setting new record highs, the precious metal has continued to attract investors thanks to expectations that the US Federal Reserve will soon shift toward monetary easing, declining real yields, and rising demand for safe-haven assets amid global economic uncertainties,” Tran said.
Central Banks and Asian Demand Add Support
Beyond investor appetite, gold prices are also being lifted by sustained central bank purchases. Many countries are actively increasing their gold reserves to diversify foreign exchange holdings and reduce reliance on the US dollar.
At the same time, physical gold demand in Asia — particularly from China and India — remains strong, providing a long-term foundation for the market.
Outlook for Gold in Dubai
With both macroeconomic and geopolitical factors fueling demand, analysts suggest that the Dubai gold market may witness further record-breaking highs in the days ahead. For consumers, the rally means higher jewellery prices, while investors view the yellow metal as an increasingly attractive hedge against uncertainty.
