Global bullion markets opened the week under renewed pressure, with spot gold climbing above a key psychological threshold as investors sought protection amid geopolitical tension and policy uncertainty. Prices briefly moved past the $4,600-per-ounce level on Monday before settling lower in early trading.
By 9am UAE time, spot gold was priced at $4,568.13 an ounce, reflecting a 1.31 per cent increase on the day. The move was supported by heightened safe-haven demand, alongside expectations that interest rate reductions in the United States may be approaching.
The international rally quickly filtered through to the UAE retail market. Data from the Dubai Jewellery Group showed 24K gold opening at AED 550.25 per gram, marking an increase of AED 7 from previous levels. This set a new local record at the start of trading.
Other categories followed the same upward path. The 22K rate climbed to AED 509.50 per gram after a rise of AED 6.50, while 21K gold was listed at AED 488.75. Prices for 18K and 14K stood at AED 418.75 and AED 326.75 per gram, respectively.
Market sentiment has been shaped in part by mounting geopolitical concerns, including renewed unrest in Iran and the risk of potential military escalation. The situation has drawn attention after repeated warnings from Donald Trump regarding possible strikes, adding to investor unease across global markets.
Additional volatility emerged following developments involving the US central bank. Jerome Powell, chairman of the US Federal Reserve, confirmed that he is under federal criminal investigation in connection with the $2.5 billion renovation of the Fed’s headquarters. Powell described the probe as a “pretext,” saying it was intended to exert further pressure on the central bank to cut interest rates.
