Global spot gold nears $3,940 amid US fiscal worries; HSBC forecasts $4,000 milestone ahead
Gold prices in Dubai opened the week at another all-time high on Monday, as investors continued to flock to the precious metal amid global economic and geopolitical uncertainty.
According to Dubai Jewellery Group data, 24K gold rose by Dh6 to Dh474.50 per gram, while 22K climbed Dh5.75 to Dh439.50 per gram. The other popular categories — 21K and 18K — opened at Dh421.25 and Dh361.25 per gram, respectively.
So far this year, 24K has surged by Dh158.25, while 22K has gained Dh146.50 per gram, underscoring gold’s strong rally through 2025.
Demand Shifts Toward Smaller Jewellery Pieces
Retailers in Dubai say the soaring prices have pushed customers toward smaller-sized ornaments, though investment demand remains steady as buyers anticipate further gains.
“Gold’s rally has surprised even seasoned investors,” said a local trader. “Many are still confident prices will continue climbing into 2026.”
Global Drivers Behind the Surge
In international markets, spot gold traded at $3,939.53 per ounce at 9:15 a.m. UAE time, supported by concerns over a possible US government shutdown, expectations of additional Federal Reserve rate cuts, and a weaker Japanese yen.
Global bank HSBC said the yellow metal could cross $4,000 per ounce in the near term, driven by geopolitical tensions, fiscal uncertainty, and challenges to US monetary policy independence.
“Rallies can continue into 2026, aided by official sector buying,” HSBC noted, adding that “institutional demand for gold as a portfolio diversifier will remain robust.”
