UAE gold prices surge four times in one week; what to expect in 2026

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Gold has surged to record highs once again, for the fourth time this week. When markets opened on Friday morning, the price of 24K gold stood at Dh543.25 per gram. This was an increase of almost Dh4 from Christmas Day, when the prices dipped slightly to Dh539.75. 

The rates of 22K, 21K, 21K,18K, and 14K stood at Dh503, Dh482.25, Dh413.50, and Dh322.50, respectively. Spot prices of gold stood at $4514 at 4:30pm. Meanwhile, silver also shot up to record highs and stood at $74.38.

Over the last month, gold has increased more than 7 per percent and silver has gone up by over 34 per cent. According to Bas Koojiman, CEO of DHF Capital, 2025 is shaping up to be the strongest annual performance of gold since 1979. 

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“The key drivers are a perfect storm: relentless central bank buying – over 980 tonnes in Q3 alone, led by emerging markets diversifying away from the dollar, massive ETF inflows as investors seek safety, a weaker US dollar amid Fed rate cut expectations, and heightened geopolitical tensions around the world. The US-Venezuela blockades and ongoing wars in Ukraine and the Middle East have contributed to this. Lower interest rates make non-yielding gold more attractive, while tariff uncertainties and inflation concerns add fuel.  

Structural shift

He pointed out that the continuous rise indicates a structural shift rather than just a cyclical rally. “Yes, there’s cyclical support from rate cuts and a softer dollar, but the real change is in how central banks and institutions are treating gold like a core reserve asset amid de-dollarisation and geopolitical risks,” he said. “Emerging markets are building holdings aggressively, and gold’s share in global assets is rising toward 3-4 percent.”

He added that since the persistent uncertainty, debt concerns, and diversification needs aren’t going away soon, the underlying re-rating of gold as a strategic necessity feels long-term, not temporary. However, he said that there will likely be pauses or corrections after 2025’s explosive gains. 

Outlook for 2026

Koojiman said that he expected gold to keep rising in 2026, with averages ranging from $4,500 to $5,000. “To sustain and build on these levels, we’d need continued lower rates, a softer dollar, ongoing geopolitical risks, and robust central bank/ETF demand,” he said. “If things stabilise too much – like a strong dollar and resolved conflicts – we could consolidate, but the balance of risks still points higher.

He concluded that gold’s explosive rise is flashing a big warning light. “Investors and central banks are worried about uncertainty: geopolitical flare-ups, trade tensions, high debt levels, potential inflation from tariffs, and questions around the dollar’s dominance,” he said. “It’s saying the world feels riskier, with more focus on safe havens and diversification away from traditional assets. While stocks are hitting highs too, gold’s surge tells us many see storm clouds ahead and want protection.”