Gold prices surge to record-high $4,966.59 as silver nears $100, UAE rates hit AED597

Vijay Valecha, January 23, 2026, Middle East Economy

Banks gave the gold rally a boost by raising their year-end target to $5,400/oz, citing increased competition for supply from central banks and investors

Gold prices reached another record high on Friday, with silver and platinum also extending their rallies to fresh all-time highs, driven by waning confidence in U.S. assets amid rising geopolitical tensions and economic uncertainty.

In the UAE, gold rates surged, with 24-carat gold rising AED5.25 to AED597 and 22-carat gold edging up AED5 to AED553. Additionally, 21-carat gold increased by AED4.75 to AED530.25, while 18-carat gold added AED4.25 to reach AED454.5.

Meanwhile, 14-carat gold gained AED3.25 to AED354.5.

Globally, spot gold rose 1.01 percent to $4,959.02 per ounce by 5:39 GMT, after touching a record high of $4,966.59 earlier in the session. U.S. gold futures for February delivery gained 0.92 percent to $4,958.40 per ounce.

Bullion rallies as U.S. dollar hovers near more than two-week low

Gold prices rallied as the U.S. dollar index hovered near a more than two-week low on Friday after dropping about 1 percent over the week, making dollar-priced metals more affordable for overseas buyers. Meanwhile, Wall Street’s main indexes suffered a sharp sell-off earlier in the week as investors were rattled by fresh tariff threats from Trump against the European Union, before staging a recovery.

“The metal has rallied by more than 65 percent over the past year, driven predominantly by the destabilization of the world’s geopolitical order and threats to the independence of the U.S. central bank. That concern was revived this week after the Supreme Court indicated that it was uncomfortable with the White House’s ongoing attempts to oust Federal Reserve Governor Lisa Cook. Any sign of the slightest violation could continue to dent faith in the U.S. dollar and drive reserve managers into gold,” said Vijay Valecha, Chief Investment Officer, Century Financial.

EU leaders breathed a sigh of relief over U.S. President Donald Trump’s reversal on Greenland as they gathered for an emergency summit in Brussels late on Thursday, while cautioning that they stood ready to respond if he issued further threats. Trump, meanwhile, said he had secured full and permanent U.S. access to Greenland under an agreement with NATO. However, the terms of any deal remain unclear, and Denmark stressed that its sovereignty over the island is not open for negotiation.

Banks raise gold’s year-end target to $5,400/oz

Gold prices also rose after Trump told reporters aboard Air Force One that the United States had an armada warship heading toward Iran, though he said he hoped it would not be used. He also renewed warnings to Tehran over the killing of protesters and any move to restart its nuclear program.

“Banks gave the rally another boost by raising their year-end target to $5,400/oz, citing increased competition for supply from central banks and investors,” Valecha added.

Silver surges to new high

“Global silver demand has surged, leading to shortages of small bars and coins as retail investors look to buy. Refineries focused on making large bars can’t keep up with demand for smaller products, leading to tighter supply. Buy the dip behavior also remains evident in trading, with tight supply and delays in small bars and coins, even though there was a sharp reversal yesterday,” he added.

Markets are pricing in two quarter-point interest rate cuts by the Federal Reserve in the second half of 2026, a shift that boosts the appeal of non-yielding gold.

In other precious metals, spot platinum rose 0.89 percent to $2,652.73 an ounce after hitting a record $2,684.43 earlier, while palladium slipped 0.99 percent to $1,901.

Source

Middle East Economy