Gold prices hit a new record in Dubai and globally as the 24K price hit Dh550 per gram at the opening of the market on Monday.

The Dubai Jewellery Group data showed 24K jumping Dh7 per gram to Dh550.25, while the 22K gold price rose Dh6.5 to Dh509.5 per gram on Monday morning.

Similarly, the 21K gold price rose to Dh488.75, 18K to Dh418.75 and 14K to Dh326.75 per gram.

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Globally, spot ‍gold broke ⁠above the psychological milestone ‌of $4,600 an ⁠ounce on ⁠Monday for ​the first time, as ‍safe-haven ​demand and expectations of rate cuts kept bullion a favoured ⁠asset.

It was trading at $4,568.13 per ounce, up 1.31 per cent at 9am UAE time, driven by geopolitical and economic uncertainties and growing bets around interest rate cuts by the US Federal Reserve.

Some of the key factors driving precious metals are growing risks of US strikes on Iran due to protests in the Persian country, as US President Donald Trump has threatened to hit Iran a few times.

In addition, Federal Reserve Chairman Jerome Powell said he is under federal criminal investigation related to the $2.5 billion renovation of the central bank’s headquarters. This also sent jitters among investors on Monday morning.

The Fed chief called it a "pretext" of the government aimed at putting further pressure on the central bank to lower rates.