Gold Prices Soar to Record High, Set for Best Month in 50 Years

Driven by geopolitical tensions and a weaker dollar, the precious metal breaches $5,500 per ounce, with Dubai prices nearing historic peaks.

Gold surged to an unprecedented high on Thursday, breaking the $5,500 per ounce barrier and positioning itself for its most significant monthly gain in five decades. The relentless rally, fueled by Middle East tensions and market uncertainty, has sent prices for the precious metal skyrocketing in global and local markets.

In Dubai, 24K gold was trading at Dh664.5 per gram on Thursday evening, just below the day’s all-time high of Dh666. So far this year, gold in the emirate has gained an impressive Dh144.5 per gram.

Key Drivers of the Rally

Market experts point to a confluence of factors propelling the surge. “On a fundamental level, gold is rising due to growing geopolitical risks,” said Vijay Valecha, Chief Investment Officer at Century Financial. He cited stalled talks on Iran’s nuclear program and hints of potential U.S. intervention in the Middle East by President Donald Trump as primary catalysts. The recent arrival of a U.S. aircraft carrier strike group, bringing the total to 10 American warships in the region, has significantly heightened market anxiety.

Adding to the momentum is a drop in the U.S. Dollar Index, prompting investors to seek refuge in traditional safe-haven assets like gold.

Other Variants Also Hit Peaks

The boom extended beyond 24K gold. On Thursday, 22K gold crossed the Dh600 per gram mark for the first time ever, reaching a high of Dh616.75 before settling at Dh615.25 in the evening.

Technical Outlook

From a technical perspective, Valecha noted that gold approached $5,604 in early trading before pulling back. He identifies $5,604 as a key resistance level; a decisive break above could open the path toward $5,700. On the downside, support is seen at $5,438, with a break below potentially leading to a test of $5,317.

As of Thursday evening, spot gold was trading at $5,504.24 per ounce, marking a 3.7 per cent increase.