Gold Prices Near Historic Highs in Dubai

Gold Prices Near 400 Dirhams – A New Historic Peak

In Dubai, gold prices have reached another historic peak as investors increasingly turn to assets considered safe havens. Global uncertainty, particularly in relation to the United States' trade policy and the weakening dollar, saw the price of gold reach 395.75 dirhams per gram for the 24-carat variant on Wednesday morning. This marks a significant increase from the 389 dirhams level at the beginning of the week, bringing the market closer to the psychological significance of the 400 dirhams mark.

Rising Gold Prices in Dubai

According to the Dubai Jewellery Group, not only the price of 24K gold has increased, but that of other purities as well:

22K: 366.5 dirhams/gram

21K: 351.5 dirhams/gram

18K: 301.25 dirhams/gram

This trend clearly shows that demand for gold is continuously rising, especially in a city like Dubai, where precious metal trading has long been a defining part of the economy and retail sector.

What is Behind the Increase?

On Wednesday, the international gold price reached 3,287.63 dollars per ounce, a 2 percent increase from the state at 9:10 AM UAE time. The main driving force behind the price surge is the increasing global trade tension, particularly the escalating tariff war between the United States and China.

Recently announced American measures – which include tariffs up to 145 percent on Chinese products – prompted immediate Chinese retaliatory measures, with 125 percent tariffs on American goods. Due to the deepening conflict and the unpredictability of US economic policy, investors are seeking safer assets, and gold is traditionally seen as such an asset.

Uncertainty is Gold's Friend

Apart from the trade war, another important factor is decision-makers' unpredictable communication, which further enhances market risk aversion. An unexpected announcement proposed exemptions from American tariffs for certain smartphones and electronics, as well as possible preferential treatment for automotive products. Although these news had a short-term positive impact on American stock markets, they ultimately increase uncertainty about the direction of economic strategy.

This uncertainty is being felt globally as investors worldwide turn to classic safe assets like gold. In this regard, Dubai plays a key role as it hosts one of the world's most famous gold markets, where tourists and locals alike monitor daily price changes.

Could it Reach 400 Dirhams?

Based on current trends, analysts believe that gold prices could soon surpass the 400 dirhams level in Dubai. This is an important threshold not only psychologically but also commercially, which could provide further momentum to the demand for precious metals – especially if the global economic environment remains unstable.

Conclusion

The gold market has once again taken center stage in Dubai as global trade and geopolitical tensions lead investors to seek safe havens. The dynamic price increase, particularly for 24K gold, indicates that the market is nearing a new historical boundary. Those looking to purchase gold for investment or gifting purposes should keep an eye on daily prices and current global events – because gold is now not only a stable asset but increasingly valuable as well.