Gold prices in Dubai climbed to a historic high on Tuesday morning, extending their strong upward momentum as global uncertainty fuels investor demand.
At 9 a.m. UAE time, the price of 24K gold surged by Dh5.25 per gram, opening at Dh466, compared to Dh460.75 at Monday’s close. Similarly, 22K gold rose by Dh4.5 to Dh431.25, while 21K and 18K stood at Dh413.75 and Dh354.50 per gram, respectively.
On the international front, spot gold was trading at $3,864.39 per ounce, nearly 1% higher. Analysts note that September is shaping up to be the metal’s strongest month in 14 years, with safe-haven buying driven by worries over a possible U.S. government shutdown and expectations of further Federal Reserve interest rate cuts.
Why Prices Are Rising
According to Ahmad Assiri, market strategist at Pepperstone, the immediate concern is not just the U.S. government’s funding standoff but also the potential blackout of key economic data during a shutdown. Such disruptions, combined with historical precedents, highlight the impact political deadlock can have on global markets.
He explained that previous shutdowns—such as the 16-day impasse in 2013 and the record 35-day closure in 2018–2019—had tangible effects on U.S. growth, with the Congressional Budget Office estimating losses of around $11 billion during the latter.
Strong Demand Absorbs Profit-Taking
Despite occasional selling, gold continues to find strong structural demand. “Selling gold at this point is proving costly, with profit-taking quickly absorbed by buyers,” Assiri said. “While short-term fatigue could occur, the ceiling on further gains remains fragile, reinforcing gold’s appeal.”
With heightened uncertainty around U.S. fiscal policy and ongoing global demand, analysts believe gold may remain on its record-breaking trajectory in the near term.
