Dubai: Gold prices at record high, cross Dh555 per gram for the first time

13/01/2026 04:55 AST

Gold prices leaped to a record high in Dubai and globally as the precious metal jumped Dh12.5 per gram till Monday evening after the metal surpassed the $4,600 psychological barrier.

The rally in gold was driven by global geopolitical and economic uncertainties, interest rate cut expectations by the US Federal Reserve and mounting concerns over the independence of the Fed.

In Dubai, the price of 24K gold, the purest form of precious metal, jumped Dh12.5 to Dh555.75 per gram. Similarly, 22K gold prices vaulted Dh11.75 per gram to Dh514.75 per gram on Monday evening. Among the other variants, 21K, 18K and 14K rose to Dh493.5, Dh423.0 and Dh330.0 per gram, respectively.

Spot gold was trading at $4,603.06 per ounce, up two per cent at 7pm UAE time.

The rising gold prices in Dubai and the UAE are pushing shoppers to lightweight jewellery and diamond-studded ornaments. In addition, according to industry insiders, gold jewellery is losing more shine than coins and bars due to the investment aspect.

Vijay Valecha, chief investment officer at Century Financial, said gold's exponential rise was driven by growing geopolitical tensions and concerns about the Federal Reserve's independence, which increased demand for safe-haven assets.

"Ongoing unrest in Iran, renewed US military pressure on Venezuela, and uncertainty about the Fed, following Chair Jerome Powell's claim that the Trump administration threatened him with criminal action over Congressional testimony, have all added to concerns about central bank credibility," he said.

Analysts project that if these uncertainties and geopolitical tensions continue in the coming days and weeks, gold will continue to scale new peaks.

In addition, labour data showed weaker US job growth, reinforcing expectations for two Fed rate cuts this year.

Moreover, the US dollar has retreated from a one-month high, further boosting bullion.

Dat Tong, senior financial markets strategist at Exness, credited Monday's rally in gold prices to an increasingly fragile geopolitical backdrop and mounting concerns over the independence of the US Federal Reserve.

"Heightened safe-haven demand followed fresh tensions in the Middle East. In Latin America, risks remain elevated, even as tentative diplomatic efforts emerge. Meanwhile, hostilities in Eastern Europe persist, reinforcing gold's appeal. Gold is also benefiting from deepening concerns over political pressure on the Federal Reserve. Federal prosecutors have reportedly opened a criminal investigation linked to the renovation of the Fed's headquarters, with Chair Jerome Powell now under scrutiny. The threat of legal action risks undermining monetary policy, reviving fears of political interference," he said.

Khaleej Times