UAE retail prices climb to Dh601 per gram as investors rush into precious metals amid debt, currency, and geopolitical fears.
SHARJAH: Gold’s historic surge broke new ground on Monday as prices soared beyond the $5,000-per-ounce mark for the first time, fuelled by widespread investor flight from shaky sovereign debt and volatile currencies toward perceived safe-haven assets.
The precious metal climbed as high as $5,085 an ounce—a gain of over 2%—extending a dramatic rally that has seen gold more than double in two years. In the UAE, the global surge translated into local retail prices hitting approximately Dh601 per gram for 24-carat gold and Dh556.50 for 22-carat.
The ‘Debasement Trade’ Gathers Pace
Traders describe the move as part of a “debasement trade,” where investors abandon traditional bonds and currencies amid fears of unsustainable public debt and political uncertainty. A sell-off in Japanese government bonds, concerns over US fiscal and monetary policy, and escalating geopolitical tensions from the Middle East to Latin America have all eroded confidence in paper assets.
“Gold is the inverse of confidence,” said Max Belmont of First Eagle Investment Management. “It’s a hedge against unexpected inflation, market drawdowns, and geopolitical risk.”
Silver and Platinum Join the Rally
The surge isn’t limited to gold. Silver recently topped $100 an ounce and gained over 4% on Monday, while platinum hit record highs—reflecting robust retail and industrial demand alongside safe-haven buying.
Institutional and Central Bank Demand Stays Strong
Institutional appetite remains strong, with Western exchange-traded funds adding around 500 tonnes of gold since early 2025. Central banks—particularly in emerging markets—continue accumulating bullion at a pace of roughly 60 tonnes per month, according to Goldman Sachs, as they diversify away from traditional reserve currencies.
Analysts Raise Targets
With gold now up over 17% this year alone, analysts are revising forecasts upward. Union Bancaire Privée expects prices to end the year near $5,200 an ounce, while Goldman Sachs has lifted its December 2026 target to $5,400, citing persistent macroeconomic and policy risks.
A Dubai-based bullion trader noted that the factors driving the rally are likely to persist. “Many of the current geopolitical and fiscal uncertainties aren’t going away soon,” he said. “Gold could stay in play for months, if not years.”
