UAE: Gold prices jump over Dh2 per gram, reach new record
Opening Monday markets in Dubai saw gold prices rise past Dh2 per gram to reach an all-time high.
The price of 24K gold jumped from Dh2.25 to Dh347 per gram at 9am UAE time on Monday after closing at Dh344.75 per gram over the weekend. The gold variants 22K, 21K and 18K opened at higher prices respectively at Dh322.75, Dh309.5 and Dh 265.25 per gram.
Strong demand coupled with US tariff policy uncertainty and geopolitical tensions has driven the yellow metal to steadily increase.
The global jewellery sector experienced reduced demand because of elevated prices which resulted in an 11 per cent decrease in annual consumption to 1,877 tonnes according to the World Gold Council.
In 2024 central banks maintained their strong gold purchasing streak by acquiring more than 1,000 tonnes for the third consecutive year.
Central bank gold purchases surged in the previous year's final quarter when they acquired 333 tonnes which resulted in a yearly total of 1,045 tonnes according to the Council.
The total gold supply reached a new historical peak at 4,794 tonnes with a year-on-year growth of one per cent.
Investment demand for gold surged by 25 per cent compared to the previous year to reach 1,180 tonnes which is the highest level in four years because of renewed interest in gold ETFs during the latter half of 2024.
The global gold ETFs reported 19 tonnes of additions during the last quarter of 2024 which resulted in two straight quarters of inflows to this asset class. In 2024 the demand for bars and coins remained roughly equal to the previous year's level of 1,186 tonnes.
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