UAE Gold Prices Surge to Record High
Gold Prices Jump Over Dh2 Per Gram
UAE gold prices increased over Dh2 per gram on Monday morning. The 24K gold price reached Dh347 per gram at 9 AM. This marks a rise from Dh344.75 per gram over the weekend. The 22K, 21K, and 18K variants also recorded price increases. Their prices stood at Dh322.75, Dh309.5, and Dh265.25 per gram, respectively.
Factors Driving the Gold Price Surge
Several factors contributed to the rise in UAE gold prices. Strong global demand pushed prices higher. Uncertainty surrounding US tariff policies also influenced the gold market. Additionally, geopolitical tensions further fueled price increases.
Jewelry Demand Declines Amid High Prices
Global jewelry demand dropped due to soaring gold prices. The World Gold Council reported an 11% decrease in annual consumption. The total jewelry demand fell to 1,877 tonnes in 2024.
Central Banks Continue Gold Purchases
Central banks increased gold acquisitions in 2024. Purchases exceeded 1,000 tonnes for the third consecutive year. The fourth quarter alone saw 333 tonnes purchased, bringing the annual total to 1,045 tonnes.
Gold Supply Reaches Record High
Total global gold supply grew by 1% in 2024. Supply levels hit a new high of 4,794 tonnes. Increased mining and recycling activities contributed to this growth.
Investment in Gold Rises
Global investment demand for gold surged by 25% in 2024. This increase brought total investment demand to 1,180 tons. The rise was driven by renewed interest in gold ETFs. The last quarter of 2024 saw an additional 19 tons in gold ETF inflows.
Bar and Coin Demand Remains Steady
Bar and coin investments maintained stability in 2024. The total demand stood at 1,186 tons, similar to 2023 levels. Investors continued to show confidence in physical gold holdings.
Conclusion
UAE gold prices reached record highs due to strong demand and market uncertainties. Jewelry demand declined, while investment and central bank purchases increased. The gold market continues to be influenced by global economic conditions.