Dubai Gold Gains as Global Tensions Weaken Dollar, Extending February Rally
Dubai: Gold prices in Dubai surged sharply on Monday, marking one of the largest single-day gains this month and pushing retail rates closer to recent record levels.
The 24-karat gold rate rose to Dh622.50 per gram, up from Dh615.25 on Sunday, a jump of more than Dh7 in a single day. The 22-karat variant increased to Dh576.50 from Dh569.75, reflecting a similar upward trend across popular jewellery categories.
This steep daily rise is notable even in a month marked by sustained volatility, driven mainly by global macroeconomic uncertainty and strong investor demand for safe-haven assets.
February Trend Shows Steady Upward Pressure
Gold price movements in February indicate a clear upward trajectory despite short-term fluctuations. The 24-karat rate started the month around Dh589.50, briefly dipping to Dh564 on February 2, the month’s lowest point.
Momentum built steadily from early February, with prices recovering above Dh600 by mid-month. The rally gained strength after February 17, when rates rose from Dh590.75, climbing almost continuously past Dh600 within days and accelerating further over the past week.
By February 20, the 24-karat gold rate had reached Dh611.50, followed by steady gains that culminated in Monday’s sharp surge to Dh622.50. Overall, prices have risen by more than Dh30 since the month’s early lows, reflecting sustained buying interest despite occasional corrections.
Global Drivers Push Bullion Higher
International markets continue to influence local prices, with gold extending gains after three consecutive weeks of increases worldwide. Bullion rose as much as 1.4% in global trading following uncertainty over US trade policy, which weakened the dollar and made gold more attractive to investors holding other currencies.
Market Sentiment Shifts Amid Global Trade and Geopolitical Tensions
Market sentiment shifted after US President Donald Trump signaled plans to impose a 15% global tariff, following a US Supreme Court ruling that limited emergency powers for setting duties. The decision has created fresh uncertainty around trade agreements with major partners, with officials in Europe, India, and Japan expressing concerns or delays in negotiations.
Geopolitical tensions are also supporting gold prices. Investors remain cautious about sovereign debt and currency stability, while in the Middle East, attention is focused on escalating US-Iran risks, including the potential for military escalation despite ongoing diplomatic talks.
Implications for UAE Buyers
Rising global uncertainty continues to feed into Dubai’s retail gold prices, which closely track international benchmarks. With prices near monthly highs and showing strong upward momentum, buyers face a choice between locking in purchases now or waiting for a potential pullback.
