Gold prices in Dubai opened the week at another high due to the 24K gold rising to Dh474.5 per gram and 22K at Dh439.5 per gram on Monday morning. Similarly, other gold variants, like 21K, reached Dh421.25, and 18K stood at Dh361.25 per gram.
24K Gold has gained Dh158.25 per gram so far in 2025. On the other hand, 22K has grown by Dh146.5. Hence, it shows the continued investor confidence in the yellow metal throughout the investor confidence.
Why Are Gold Prices Rising?
Global economic uncertainty is among the major reasons behind this surge. Notably, the spot gold prices touched $3939.53 per ounce early Monday UAE rime, which is on the edge of $4000 mark. Analysts attribute the following factors to this rally:
- Concerns about a potential U.S. government shutdown
- Expectations of Federal Reserve rate cuts
- A decline in the Japanese yen
- Geopolitical tensions and fiscal instability
Global bank HSBC expects gold to cross $4,000 per ounce soon due to the growing demand from central banks and investors looking for a safe haven. HSBC said, “Rally can continue into 2026, aided by the official sector buying and institutional demand for diversification”.
Analysts Predict Strong Long-Term Outlook
Goldman Sachs shares a similarly optimistic outlook, forecasting gold to reach $ 3,700 by the end of this year and $ 4,000 by mid-2026. Moreover, the bank revealed that the price could climb as high as $ 4,500 per ounce if private investors shift heavily from Dubai-based assets to gold. Moreover, the short-term gain might indeed slow. However, the long-term trajectory is upward as the central banks continue to accumulate gold reserves.
What This Means for UAE Buyers and Investors
Jewelry prices in Dubai closely follow the global gold rates. However, the link of dirhams to the US dollar limits significant volatility. Still, the gold has become significantly costlier for customers.
Now, families shopping for weddings or festivals are choosing lighter ornaments. However, the investors are advised to purchase slowly to average costs and manage risks. Moreover, traders suggest a brief pullback could happen near $3900 to $4,000 per ounce. However, such dips are expected to be short-lived.
The Road Ahead
HSBC and Goldman Sachs predict continued strength through 2026 due to central bank demand and U.S. rate cuts. Hence, UAE residents should stay patient, invest smartly, and seize any short-term dips before the next record high.
Read more:
GITEX 2025: Redefining Global Innovation and AI Leadership in Dubai
Valetax and Vantage Markets to Shine as Elite Sponsors at the Forex Expo
[…] Gold Prices Surge in Dubai as 24K Nears Dh475 per Gram […]