Gold prices in Dubai have seen a notable surge this week, reaching their highest point in over three months. As of Monday morning, 24K gold was trading at Dh559.50 per gram, reflecting a solid increase of Dh3.50 from the previous weekend. Other popular varieties, including 22K, 21K, 18K, and 14K, also experienced upward movement, trading at Dh518, Dh496.75, Dh425.75, and Dh332 per gram, respectively. This rally aligns with global market trends, where spot gold reached $4,641.50 per ounce, marking its strongest performance since mid-May.

Market analysts attribute this bullish trend to a combination of a weaker US dollar, lower Treasury yields, and ongoing geopolitical instability. While some cooling in trade tensions—specifically the pause on tariffs—might typically dampen interest in safe-haven assets, experts note that persistent policy uncertainty and fiscal concerns continue to favor gold. According to industry analysts, investors are currently shifting their focus away from high-yield US Treasury bonds toward alternative assets, keeping gold in a "bid mode" as the market navigates a complex economic cycle.