Dubai Gold Prices Cross Dh560 as Tariff Fears Push Safe-Haven Demand

Dubai’s gold market opened at unprecedented levels on Monday, with 24-karat gold breaching the Dh560 mark for the first time. The price climbed to Dh561.25 in early trading, up sharply from Dh553.75 the previous day, reflecting a strong wave of safe-haven buying triggered by global economic and political uncertainty.

The surge is part of a sustained rally seen throughout January. At the beginning of the month, 24-karat gold was trading near Dh520, while 22-karat hovered around Dh481. Prices steadily gained momentum, crossing Dh540 in the second week and breaking past Dh550 by mid-month. By January 19, gold had added nearly Dh40 per gram in less than three weeks.

The 22-karat segment mirrored the same trajectory, climbing from around Dh480 in early January to Dh519.75. Retail jewellers across Dubai reported heightened investor interest, with buyers increasingly treating gold as a hedge against volatility rather than just a jewellery purchase.

Global developments have played a central role in driving the rally. International markets reacted strongly after renewed tariff threats from the United States raised fears of escalating trade tensions with Europe. Precious metals surged worldwide as investors sought refuge from currency risks, geopolitical uncertainty and policy instability.

Spot gold traded near $4,660 an ounce, while silver gained sharply amid rising demand for defensive assets. Exchange-traded funds also recorded their largest weekly inflows since September, reinforcing the momentum. Analysts note that weakening confidence in central bank independence and fears of currency debasement have further strengthened gold’s appeal.

In Dubai, the gold rally has wider implications beyond retail buyers. Rising bullion prices influence everything from jewellery manufacturing to investment planning and cross-border trade decisions. Market experts say sustained price strength could affect capital allocation strategies for individuals and firms evaluating long-term financial positioning, including those exploring business setup in dubai as part of broader investment or diversification plans.

Other metals have also joined the uptrend. Copper prices continued to rise on the back of supply constraints and demand from artificial intelligence and renewable energy sectors. While China’s GDP growth met official targets, ongoing stress in its property sector could shape future industrial metal demand.

For now, bullion traders expect volatility to remain elevated. With tariffs set to rise further in the coming months and geopolitical risks unresolved, gold’s role as a safe-haven asset appears firmly reinforced, keeping Dubai prices near record territory.