Gold prices in Dubai have surged to unprecedented levels, with the market opening at a rate nearing $3,700 per ounce. This translated to sharp increases for various carats, with 24-carat gold reaching 444.75 dirhams per gram and other variants like 22, 21, and 18-carat also seeing significant hikes early in the trading day.
The primary drivers behind this price spike are global factors. Investors are increasingly turning to gold as a safe-haven asset due to two key reasons: interest rate cuts by the US Federal Reserve and ongoing geopolitical tensions in regions like the Middle East and Ukraine. This shift in investor behavior has directly fueled the rally in gold values.
However, this price boom has had a negative impact on the local retail market. Jewellers in Dubai are reporting a steep decline in sales, with some shops experiencing a drop of up to 40%. The rapid and uncertain price increase has made consumers reluctant to buy, creating a atmosphere of concern within the Dubai gold market as high prices stifle consumer activity.
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