Gold rates in Dubai experienced a modest recovery on Monday morning, rising by nearly Dh2 per gram following a challenging week of losses. According to the Dubai Jewellery Group, 24-karat gold was priced at Dh387.75 per gram, up from Dh386 at the close of trading on Friday.
Other popular gold varieties also reflected the upward trend, with 22K gold opening at Dh359.25 per gram, 21K at Dh344.50, and 18K at Dh295.25.
On the global stage, spot gold increased by 0.52% to reach $3,220.47 per ounce. This gain was supported by a weakening US dollar and growing concerns over global economic uncertainty.
Factors Driving the Gold Rally
Market jitters over tariffs and credit ratings have played a significant role in the recent shift. Investor anxiety surged after President Donald Trump renewed his trade war rhetoric, coupled with Moody’s downgrade of the US credit rating. Historically, such risk-off sentiments tend to boost gold demand as investors seek safe-haven assets.
Tim Waterer, chief market analyst at KCM Trade, commented, “The Moody’s downgrade of the US credit rating, and the corresponding risk-off reaction by the market, has put some pep back into the gold price.”
Further pressure on markets came from Treasury Secretary Scott Bessent’s confirmation that the administration intends to proceed with tariffs unless trading partners comply, intensifying market volatility and drawing gold buyers back.
Outlook Amid Market Volatility
Last week, gold prices fell by over 2%, marking their worst weekly performance since November 2024. However, with renewed safe-haven demand and a fragile US dollar, the precious metal is showing signs of regaining strength—at least in the short term.