Gold prices in the UAE have reached their highest level in a year, crossing AED 275 per gram, as rising global market tensions push investors towards safer assets. The sharp increase has caught the attention of both investors and shoppers in Dubai’s famous gold markets.
According to traders in Dubai’s Gold Souk and other jewelry outlets, the price of 24-karat gold climbed to AED 275.5 per gram earlier this week. Similarly, 22-karat gold touched AED 255.5, while 21-karat and 18-karat varieties stood at AED 247 and AED 211.5 per gram, respectively.
Why Are Gold Prices Rising?
The surge in gold prices is mainly due to growing fears of a global economic slowdown, geopolitical tensions, and fluctuations in the U.S. dollar.
Experts say that when uncertainty increases, people often buy gold as a “safe haven” investment. As a result, demand for gold rises, and so do prices.
In addition, central banks around the world have been buying gold heavily to protect their reserves. This has created extra demand, pushing prices even higher.
Rahul Khanna, a senior gold analyst based in Dubai, said,
“Gold prices are being driven by a combination of inflation concerns, weak global growth projections, and safe-haven buying. We could see prices staying high or even rising further if uncertainty continues.”
Impact on Local Buyers and Retailers
The gold rush has brought mixed reactions from local residents. Some shoppers are rushing to buy before prices climb even higher, while others are holding off, hoping for a dip.
Retailers in Dubai report a surge in traffic, particularly from tourists and long-term investors. Many tourists view buying gold in Dubai as a must-do activity, and they are trying to lock in their purchases before prices rise further.
Ahmed Al Ansari, manager of a popular gold store in Deira, shared,
“We have seen a noticeable jump in customer footfall over the last few days. Some are buying in small quantities like rings and bangles, while others are making heavier investments in bars and larger jewelry items.”
However, for ordinary shoppers who buy gold for weddings, gifts, or personal use, the price hike is a concern. Some have decided to postpone their purchases.
“I was planning to buy a necklace for my daughter’s wedding. But now with these prices, I might wait a little and see if it comes down,” said Fatima Saeed, a Dubai resident.
Global Markets Driving the Trend
On the international market, gold prices recently touched $2,350 per ounce, marking a 12% gain since the start of 2025. Analysts say the ongoing conflicts in parts of Eastern Europe and the Middle East have added to market anxiety, prompting investors worldwide to seek the security of gold.
Meanwhile, U.S. Federal Reserve policies are also playing a big role. There is growing speculation that the Fed might delay interest rate cuts, which has created mixed signals for the dollar. Since a weaker dollar usually benefits gold (because it becomes cheaper for buyers using other currencies), any instability in U.S. monetary policy directly affects gold prices.
Will Prices Continue to Rise?
Experts are divided on whether the current rally will last.
Some believe that gold prices could hit new records if global tensions continue and central banks keep buying gold at the current pace. Others warn that if the global economy stabilizes or if interest rates rise unexpectedly, gold prices could fall back.
A report by the World Gold Council noted,
“While gold prices have shown remarkable strength in 2025, much will depend on how geopolitical and economic risks unfold in the coming months.”
Local financial advisors in the UAE are encouraging investors to diversify and not to panic-buy gold at its peak price. “It’s important to balance your portfolio and not make emotional decisions based on market hype,” said Lina Rashid, a wealth advisor based in Abu Dhabi.
What Buyers Should Know
If you are considering buying gold in the UAE right now, here are a few tips:
- Compare Prices: Always check the live gold rates at multiple stores before making a purchase.
- Focus on Value: Instead of large, flashy pieces, consider smaller items or gold bars if you’re investing.
- Understand Making Charges: Jewelry often carries a making charge on top of the gold price. Bars and coins usually have lower extra costs.
- Keep Receipts: Always take proper invoices for your purchase; this will help if you plan to sell or exchange later.
Dubai remains one of the best places in the world to buy gold, thanks to its competitive pricing, authenticity guarantees, and wide variety of designs.
Final Thoughts
Gold has long been seen as a symbol of wealth, tradition, and safety. With prices hitting a 12-month high, investors and shoppers alike are paying close attention. Whether you’re buying gold for investment, personal use, or a special occasion, it’s wise to stay informed and plan your purchase carefully.
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