BUSINESS: Gold prices have reached an all-time high, soaring to $2,800 per ounce, driven by increasing investor demand and global economic uncertainties. In the UAE, the surge has pushed 22-carat gold prices beyond Dh313 per gram, marking a significant milestone in the precious metal’s valuation. Analysts attribute this sharp rise to a combination of factors, including inflation concerns, geopolitical tensions, and central bank policies that have fueled gold’s appeal as a safe-haven asset. The unprecedented increase underscores the metal’s long-standing reputation as a reliable store of value during periods of financial instability.
The rally in gold prices has been further intensified by growing concerns over inflation and economic volatility. As central banks across the world adopt cautious monetary policies, investors are seeking refuge in gold to hedge against currency devaluation and stock market fluctuations. The ongoing geopolitical conflicts, particularly in key economic regions, have also played a role in the surge, prompting both institutional and retail investors to increase their holdings. Additionally, fluctuations in the US dollar have contributed to the metal’s rising value, reinforcing its position as a preferred investment.
In the UAE, the demand for gold has remained strong despite rising prices, with consumers continuing to invest in jewelry and bullion as a long-term asset. The local gold market, known for its resilience, has witnessed steady buying activity from residents and tourists alike. Jewelers report that while some buyers are cautious, many see the current prices as an opportunity to invest before potential further increases. The UAE’s tax-free gold market and reputation for high-quality products have also contributed to sustained demand, keeping the market active even amid price fluctuations.
Looking ahead, experts predict that gold prices may continue to climb if global uncertainties persist. Central banks are expected to maintain their gold reserves, further supporting the upward trend. While short-term corrections may occur, the overall trajectory remains bullish as investors closely monitor economic indicators and geopolitical developments. As a result, gold is likely to retain its status as a preferred asset for wealth preservation, reinforcing its importance in both individual and institutional investment portfolios.
