Gold Prices in Dubai Surge Sharply, Hitting Monthly Highs Amid Global Uncertainty
Dubai, UAE — Gold prices in Dubai climbed sharply on Monday, jumping by around Dh7 per gram in a single day and marking one of the most pronounced increases in recent weeks. The surge pushed the cost of 24-karat gold close to its highest levels of the month, reflecting growing global market uncertainty and a renewed appetite among investors for safe-haven assets that traditionally perform well during turbulent times.
According to traders and pricing data from the local market, the 24-karat gold rate climbed to Dh622.50 per gram, up from Dh615.25 the previous day, representing a significant single-day move that caught the attention of buyers and sellers across the emirate’s famous gold souks. At the same time, lower-purity gold such as the 22-karat variety also rose — increasing to Dh576.50 from Dh569.75 — showing that the whole bullion market in Dubai is experiencing broad upside pressure across all grades and product categories.
How the Prices Have Evolved This Month
Dubai’s gold market has been on an upward trajectory throughout February, despite some short-term fluctuations that have kept traders on edge. At the beginning of the month, 24-karat gold was trading around Dh589.50 per gram, a level that already represented firm pricing. It then dipped as low as Dh564 on February 2, offering a brief window of relative affordability for those watching the market.
But since mid-month, prices have steadily gained ground — crossing the Dh600 mark with conviction and extending the rally into its final weeks without significant pullback. This sustained upward momentum suggests genuine demand rather than speculative spikes.
By February 20, the 24-karat price had already reached Dh611.50, and in the days that followed, it climbed continuously until Monday’s notable spike brought it near Dh622.50. This indicates an overall rise of more than Dh30 per gram since early in the month, a substantial increase that affects everyone from small jewellery buyers to institutional investors.
Global Forces Behind Local Price Movement
Analysts say Dubai’s gold prices closely mirror international bullion trends, which have been shaped by a mix of geopolitical tensions, currency movements, and economic policy uncertainties emanating from major economies. Global markets saw gold extend gains for several weeks in a row, with prices rising as much as about 1.4% in some sessions as investors sought refuge from volatility elsewhere.
One major influencer on prices has been the weakening of the US dollar, which has moved in favour of gold buyers holding other currencies. When the dollar softens against other currencies, gold — traditionally priced in dollars — becomes more affordable for holders of other currencies, expanding the pool of potential buyers. This dynamic tends to lift demand and push prices higher, particularly in retail bullion markets like Dubai’s that serve an international clientele.
Meanwhile, geopolitical risks remain elevated and show no signs of abating. Investors are keeping a close eye on developments in the Middle East, where tensions involving the United States and Iran continue to simmer following military actions and diplomatic confrontations. Potential escalations or setbacks in diplomatic negotiations can boost safe-haven demand for gold as a hedge against broader instability that could affect currencies and equities.
Uncertainty linked to global trade policy has also played a role in driving gold demand. For example, recent moves by the US administration to consider new tariffs on trading partners have prompted concerns about economic growth, inflation, and supply chain disruptions, which can stoke investor fear and strengthen demand for traditional stores of value like gold that maintain purchasing power when other assets decline.
What It Means for Buyers and Investors
For customers in the UAE, the recent price jump has several practical implications that extend beyond market commentary. Retail buyers considering purchases of gold jewellery or bullion are now faced with higher costs, particularly as prices hover near monthly highs and show little sign of immediate retreat.
Some may choose to lock in purchases now rather than risk paying even more later if the rally continues, betting that current prices will look reasonable in hindsight. This psychology can actually fuel further demand as buyers rush to beat price increases.
Others might wait for possible corrections if prices appear overextended based on technical indicators or historical patterns, hoping to catch a pullback before committing funds. This waiting game carries its own risks if prices continue climbing.
From an investment perspective, the ongoing rally underscores gold’s role as a hedge against uncertainty in diversified portfolios. In periods of heightened market risk, investors often shift funds into gold to preserve wealth, especially when traditional markets like equities and bonds show volatility or negative outlooks that threaten capital.
However, experts also caution that bullion prices can be volatile in the short term, and the same forces that drive prices up can reverse direction quickly. Sharp gains often bring with them the possibility of profit-taking or technical corrections, especially if economic indicators improve, if global tensions ease, or if central banks signal changes in monetary policy that affect gold’s appeal.
Traders closely watching interest rate expectations, currency markets, and broader risk sentiment will likely influence price movements in the weeks ahead, making short-term predictions unusually difficult.
A Reflection of Broader Market Sentiment
Dubai — known globally as a major gold trading hub and often called the “City of Gold” — reflects broader market sentiment more quickly than many other physical markets because local retail prices respond directly to international benchmarks without significant lag. The emirate’s gold souks serve as a real-time barometer of investor and consumer sentiment.
With prices now rallying close to Dh622.50 per gram for pure gold, the trend suggests that both local consumers and global investors are paying close attention to broader economic and geopolitical cues that influence bullion’s appeal as a store of value. The direction of travel suggests caution rather than confidence about the global outlook.
As 2026 progresses, gold’s performance in Dubai and other Gulf markets will continue to act as a barometer of investor confidence — or caution — amid changing global financial conditions, currency dynamics, and political developments that show no signs of settling into predictable patterns.
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The Outlook
For now, gold’s trajectory points upward, driven by forces that show little sign of reversing. A weak dollar, geopolitical tensions, and economic uncertainty form a powerful combination that historically supports higher prices.
Whether this rally has further to run or is due for a correction depends on factors beyond any single market’s control. But for Dubai’s gold traders and buyers, the message is clear: in uncertain times, gold shines bright.
Gold at Dh622.50. Uncertainty driving demand. The safe-haven rally continues.
