UAE gold prices surged to a record high on Monday afternoon, driving a temporary dip in jewellery demand across the country. The 24K gold variant reached Dh296 per gram in the afternoon before easing to Dh292 per gram by evening, compared with Dh293 per gram earlier in the day. Other variants also moved sharply: 22K gold stood at Dh271.25 per gram, 21K at Dh262.5 per gram, and 18K at Dh225 per gram.
Shoppers Adopt a Wait-and-Watch Approach
Dubai gold jewellery buyers are known for their patience — they tend to hold off purchases when prices spike, betting on a near-term correction. That pattern played out again as many residents had already bought jewellery in the weeks leading up to Akshaya Tritiya on 10 May, a date considered highly auspicious for gold purchases among the South Asian community.
During the festival window, gold jewellers in Dubai reported strong turnover as residents and visitors took advantage of discount promotions and zero making-charge offers. Some industry executives now expect a brief cooldown in sales before demand recovers, with the upcoming wedding season and later festivals expected to provide fresh momentum. Gold continues to hold its safe-haven appeal for both local and international buyers.
Global Factors Driving UAE Gold Prices Higher
Spot gold traded globally at $2,422.45 per ounce at 7 PM UAE time on Monday, down from an intraday peak of $2,450 per ounce — still a historically elevated level. The rally was fuelled by growing optimism that the US Federal Reserve would cut interest rates, which weakens the dollar and lifts gold's relative value.
Mohamed Hashad, Chief Market Strategist at Noor Capital, said gold hit its record during the Asian session on Monday as geopolitical tensions in the Middle East stoked demand for safe-haven assets. The helicopter crash that killed Iranian President Ebrahim Raisi added a fresh layer of uncertainty, while the ongoing Russia-Ukraine military conflict continued to support defensive positioning among investors.
