UAE gold prices up more than 60% in 2025; residents see investments nearly double
[Editor's Note: Want to know the gold rate in Dubai? Click here]In the last week of December 2024, Abu Dhabi resident Zeba Mohammed bought 10 grams of gold for herself after saving up for the year. Today, a year later, the value of the gold she bought has almost doubled. “I bought earrings and two bracelets amounting to a total of 10 grams of gold,” she said. “The price at the time was about Dh295. So, I paid a little over Dh3000 in total including the making charges. Today, those gold ornaments are worth about Dh5000. I am glad that I invested in gold and I keep advising my friends and family to do the same. When my sister had children, I gifted them gold coins. I think it is the easiest and most accessible form of investment.” According to Ole Hansen, Head of Commodity Strategy at Saxo bank, gold prices are up more than 60 per cent this year alone and more than 110 percent over the past two years combined. “While the magnitude of the move has surprised many, the foundations for this rally were laid several years ago and reflect a profound shift in the macro, geopolitical, and institutional backdrop for gold.” Stay up to date with the latest news. Follow KT on WhatsApp Channels.On January 1 this year, the price of 24K gold was Dh318.0 per gram and 22-carat variant was at Dh294.5. Similarly, 21-carat and 18-carat stood at Dh285.0 and Dh244.5 per gram, respectively. In comparison, gold hit record highs today as 24K gold rose to stand at Dh540. The rates of 22K, 21K,18K, and 14K stood at Dh500, Dh479.50, Dh411 and Dh320.50. Small investmentsRising prices have also encouraged first-time and small-scale investors to enter the market. UAE expat, Sana Ashraf began investing for the first time earlier this year. “As part of my resolution to become more financially responsible, I began investing in Exchange-Traded Funds (ETFs),” she said. “One of the first purchase I made was of gold and silver. It had been just a few months but already my portfolio has grown by 30 per cent.” She is among several people who have continued to make regular investments in the yellow metal. Dubai resident Ashraf Khan has made it a habit to invest in gold every month since earlier this year. “Every year, I pay around Dh2000 to a jewellery shop in Dubai for a scheme that allows me to buy gold ornaments,” he said. “If I pay it for one year, at the end of it, I can buy ornaments without making charge. I thought it was a great way to invest in gold as well as make my wife happy with jewellery. Seeing the rate at which gold has risen, I am quite happy with the investment I have made.” Outlook for 2026 While investors remain upbeat, analysts caution that the rally may not be without bumps. Ole pointed out that despite the rally, gold does face some risk in 2026. “The strong gains in 2025 mean that the upcoming rebalancing of major commodity indices will trigger significant selling in futures markets,” he said. “This process, running for five days from 8 January, could generate notable short-term volatility. How well the market absorbs this selling will likely help determine price direction during the first quarter.” He added that there was also the question of demand sustainability. “As gold prices rise, the value of existing central-bank reserves increases, which could eventually lead to a moderation in official buying,” he said. Beyond short-term risks, several scenarios could still push gold to new highs and towards the end of 2026 target of $5,000. “Sticky inflation combined with rate cuts into slowing growth would raise concerns about stagflation-like conditions — a historically supportive environment for gold,” he said. UAE gold prices: How 2025 became defining year for yellow metalDespite record gold prices, UAE customers continue buying, just differentlyRecord run to uncertainty? Gold rangebound but ripe for sharp swings in 2026, says WGC
[Editor's Note: Want to know the gold rate in Dubai? Click here]
In the last week of December 2024, Abu Dhabi resident Zeba Mohammed bought 10 grams of gold for herself after saving up for the year. Today, a year later, the value of the gold she bought has almost doubled.
“I bought earrings and two bracelets amounting to a total of 10 grams of gold,” she said. “The price at the time was about Dh295. So, I paid a little over Dh3000 in total including the making charges. Today, those gold ornaments are worth about Dh5000. I am glad that I invested in gold and I keep advising my friends and family to do the same. When my sister had children, I gifted them gold coins. I think it is the easiest and most accessible form of investment.”
According to Ole Hansen, Head of Commodity Strategy at Saxo bank, gold prices are up more than 60 per cent this year alone and more than 110 percent over the past two years combined. “While the magnitude of the move has surprised many, the foundations for this rally were laid several years ago and reflect a profound shift in the macro, geopolitical, and institutional backdrop for gold.”
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
On January 1 this year, the price of 24K gold was Dh318.0 per gram and 22-carat variant was at Dh294.5. Similarly, 21-carat and 18-carat stood at Dh285.0 and Dh244.5 per gram, respectively.
In comparison, gold hit record highs today as 24K gold rose to stand at Dh540. The rates of 22K, 21K,18K, and 14K stood at Dh500, Dh479.50, Dh411 and Dh320.50.
Small investments
Rising prices have also encouraged first-time and small-scale investors to enter the market. UAE expat, Sana Ashraf began investing for the first time earlier this year. “As part of my resolution to become more financially responsible, I began investing in Exchange-Traded Funds (ETFs),” she said. “One of the first purchase I made was of gold and silver. It had been just a few months but already my portfolio has grown by 30 per cent.”
She is among several people who have continued to make regular investments in the yellow metal. Dubai resident Ashraf Khan has made it a habit to invest in gold every month since earlier this year. “Every year, I pay around Dh2000 to a jewellery shop in Dubai for a scheme that allows me to buy gold ornaments,” he said. “If I pay it for one year, at the end of it, I can buy ornaments without making charge. I thought it was a great way to invest in gold as well as make my wife happy with jewellery. Seeing the rate at which gold has risen, I am quite happy with the investment I have made.”
Outlook for 2026
While investors remain upbeat, analysts caution that the rally may not be without bumps. Ole pointed out that despite the rally, gold does face some risk in 2026. “The strong gains in 2025 mean that the upcoming rebalancing of major commodity indices will trigger significant selling in futures markets,” he said. “This process, running for five days from 8 January, could generate notable short-term volatility. How well the market absorbs this selling will likely help determine price direction during the first quarter.”
He added that there was also the question of demand sustainability. “As gold prices rise, the value of existing central-bank reserves increases, which could eventually lead to a moderation in official buying,” he said.
Beyond short-term risks, several scenarios could still push gold to new highs and towards the end of 2026 target of $5,000. “Sticky inflation combined with rate cuts into slowing growth would raise concerns about stagflation-like conditions — a historically supportive environment for gold,” he said.
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