Dubai Gold Prices Soar to Three-Month High Amid Global Market Volatility

Gold prices in Dubai have surged to their highest level in three months as the precious metal continues its upward trend. The 24K variant of gold is trading at Dh559.50 per gram, just shy of the Dh600 mark. This marks a gain of Dh3.5 over the weekend and puts the market on high alert.

The global spot price of gold has also seen an increase, reaching $4,641.5 per ounce as of 9:10 am UAE time. This represents a 0.58% rise and marks its highest level since mid-May.

Analysts attribute the surge in gold prices to lower US Treasury yields, a weakened dollar, and persistent policy uncertainty. Naeem Aslam, CIO of Zaye Capital Markets, notes that President Donald Trump's three-day pause on proposed 50% tariffs against Canada has reduced one near-term source of economic friction.

However, Aslam also emphasizes the continued geopolitical uncertainty surrounding Iran and the US, which preserves an important safe-haven premium for gold. He adds that while the emphasis on maintaining US leadership in AI, technology, and digital assets can strengthen broader risk appetite, it does not directly remove gold's sensitivity to real yields, currency moves, fiscal conditions, and geopolitical hedging.

Samer Hasn, senior market analyst at xs.com, sees gold's recovery as part of a new phase in the market capital cycle. He notes that investors are shifting from high-yield US Treasury bonds toward alternative assets due to uncertainty in the fixed income market.