Gold Prices Soar to 90-Day High in Dubai Amid Geopolitical Uncertainty

Gold prices in Dubai have surged to a 90-day high, reaching Dh550 per gram over the weekend. This marks an increase of approximately Dh70 per gram since August. Analysts are divided on whether gold will reach its previous peak of Dh600 per gram, achieved in late January this year.

Naeem Aslam, CIO at Zaye Capital Markets, attributes the current price rise to a combination of lower Treasury yields, US dollar weakness, and persistent policy uncertainty. He notes that while US President Donald Trump's trade agreement with Canada may have temporarily softened demand for defensive assets, geopolitical uncertainty continues to drive gold prices.

Samer Hasn, senior market analyst at xs.com, believes the current trend is driven by a shift from high-yield US Treasury bonds toward alternative assets. He also cites inflows into physical gold exchange-traded funds, including $2 billion in SPDR Gold Shares (GLD), as contributing to the upward trend.

However, Hasn warns that Middle East risks could cut both ways for gold prices, with potential reimposition of limits on capital flow toward gold due to inflation risks and high bond yields. He also notes a decline in investment liquidity in the Middle East and Asia.