Gold Prices Soaring in UAE and Kerala: A Comparative Look

  • 27/03/2025

Dubai: Gold prices have been surging globally due to geopolitical tensions, inflation concerns, and market reactions. The UAE and Kerala are witnessing similar trends, with prices soaring over the past few months.

In the UAE, gold prices have risen by more than 16% since the beginning of the year, crossing 3,000 dirhams per ounce. On Wednesday evening, the price of 24-karat gold in the UAE stood at 363.25 dirhams per gram, slightly higher than the previous night's 363 dirhams. Prices for 22-karat, 21-karat, and 18-karat gold also increased to 336.50, 322.50, and 276.50 dirhams per gram, respectively.

Key reasons behind the surge:
1- Rising inflation concerns
2- Expectations of a global interest rate cut
3- Increasing geopolitical tensions
4- Central banks boosting their gold reserves

Commodity analysts Warren Patterson and Eva Manthe from ING suggest that uncertainty over global trade policies and tariffs is also a driving factor behind the rising gold prices.

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