Dubai Gold Prices Hit All-Time High as Global Uncertainty Spurs Surge

Dubai, April 22 Gold prices in Dubai soared to unprecedented levels on Monday morning, with 24-karat (24K) gold reaching AED 405.25 per gram, marking a new record high. The sharp rise is attributed to growing global economic and geopolitical tensions, as well as fresh concerns about U.S. monetary policy direction.

Gold Prices Reach Historic Peaks Across Variants

According to Dubai Jewellery Group, the updated market rates as of Monday morning are:

• 24K gold: AED 405.25 per gram

• 22K gold: AED 375.25 per gram

• 21K gold: AED 360.00 per gram

• 18K gold: AED 308.50 per gram

The surge mirrors broader trends in Asia, where gold touched $3,370.17 per ounce, an all-time high on the back of market anxiety driven by tariff concerns and comments from former U.S. President Donald Trump criticizing the Federal Reserve.

Experts Warn of Further Price Volatility

Charu Chanana, Chief Investment Strategist at Saxo Bank, noted that markets are under stress from rising geopolitical tensions and the growing perception of potential interference in the U.S. Federal Reserve’s autonomy.

“Any signs of political pressure on monetary policy could undermine the Fed’s independence and complicate the path ahead for interest rates, just as investors are seeking stability,” said Chanana.

Adding to the momentum, Saxo Bank and Citi Research have both raised their gold price forecasts for 2025, now predicting it could reach $3,500 per ounce.

Rate Cut Expectations Fuel Gold Demand

The U.S. futures market is currently pricing in a potential 75–100 basis point interest rate cut by year-end, according to Saxo Bank analysts. Lower interest rates typically boost demand for gold, which does not generate yield but is considered a safe haven during times of market uncertainty. The lower the interest rates, the lesser the opportunity cost of holding gold — making it more attractive to investors.

With global market volatility on the rise, Dubai’s gold market continues to serve as a key barometer for investor sentiment and economic anxiety.