Gold hits historic highs locally and globally amid expectations of further gains

SANAA, Sept. 06 (YPA) – Gold prices in Yemen and global markets have seen a significant surge in the first days of September. This is driven by rising demand for the precious metal as a safe haven amid ongoing geopolitical tensions and economic uncertainty.

Major Jump in Local Markets

In Yemen’s local markets, gold prices have made massive leaps. The price of a gold pound in Aden has reached 1.3 million Yemeni riyals, while a gram of 21-karat gold hit 172,000 riyals. This increase represents a jump of 160,000 riyals for a pound and 30,000 riyals for a gram since the beginning of September.

In Sanaa’s markets, the gold pound reached 424,000 riyals, and a gram of 21-karat gold exceeded 54,000 riyals, an increase of 15,000 riyals for a pound and 2,000 riyals for a gram.

Gold Nears Historic Levels Globally

Globally, gold prices have continued their strong gains. Gold futures rose by 1.29% to reach $3,653.30 per ounce, while spot contracts were at $3,586.69. Gold has appreciated by 37% since the start of 2025, supported by a weakening dollar and increased purchases by central banks.

Forecasts: Gold Could Reach $5,000 per Ounce

Goldman Sachs predicts that gold could touch $5,000 per ounce if political pressure on the U.S. Federal Reserve escalates. Dan Streeter, the co-head of commodity research at the bank, warned that undermining the Fed’s independence could lead to higher inflation and a decline in the dollar’s value, strengthening gold’s position as a store of value.

BlackRock Investment Institute confirmed that gold has become “one of the few reliable safe havens” as traditional investments like Treasury bonds have lost their protective function during downturns. Data also shows that central banks have quintupled their gold purchases since the outbreak of the war in Ukraine, reflecting a strategic shift in global investment portfolios.

YPA