Gold prices are changing on an hourly basis, hitting fresh new records for the past week. This trend continued on Tuesday as the precious metal hit a new record high in Dubai and globally, jumping over 5 percent to surpass $3,480 per ounce. (The ounce typically refers to a troy ounce, which is equivalent to 31.1034768 grams. This is the standard unit of weight used in the gold market for measuring precious metals.)
In Dubai, one of the biggest gold markets in the world, the prices hit Dh 420 per gram. (Dh1--UAE dhirham--is Rs 23.17 ). The 24-karat variant of gold jumped to Dh 420 per gram on Tuesday, gaining nearly Dh15 per gram in one day. Similarly, 22-karat rose to Dh388.75 per gram on Tuesday, up over Dh13 per gram since Monday morning.
Among the other variants, 21K and 18K were trading at Dh372.75 and Dh319.5 per gram. Spot gold was trading at $3,480.22 per ounce, up 4.74 percent at 9.20 am UAE time due to weakness in the US dollar and uncertainty over US-China trade tension. It jumped over 5 per cent earlier to surpass $3,485 per ounce.
Dubai is a major hub in the global gold market, particularly for physical gold trade and as a distribution centre for other GCC markets. It is among the top three gold trading hubs globally, with a significant portion of the world's annual gold trade--estimated between 20% and 30%--passing through Dubai annually.
Many research and financial institutes have recently raised their forecasts for gold to $3,500 per ounce. Many of them predicted that it would touch $4,000 next year. But if the tariff uncertainty persists, the precious metal could possibly touch the $4,000 market this year.
Analysts and gold jewellers in Dubai believe that the prices of the precious metal will stay on the higher side and are unlikely to see a major correction.
“A weaker US dollar and heightened geopolitical risk — including tariff-led fear and uncertainty — have been key drivers of gold’s performance. Alongside this, strong gold ETF buying across most regions has been propelling gold higher," said Kavita Chacko of World Gold Council. "Investor interest is likely to strengthen as gold’s appeal as a safe-haven asset and portfolio diversifier heightens amid global economic uncertainties and financial market volatility.”
Going forward, she said seasonal and wedding-related purchases in India may support gold demand this month and next.
