The price of gold in Dubai hits record highs -- The city's exchange valued 24-karat gold is now at approximately AED 632 per gram, breaking past ceiling highs and making all-time highs, in the face of worldwide economic uncertainty. The prices of 24-karat gold in the city have soared and now the price of retail gold sells for about AED 632 per gram: it is among a steep monthly increase for the city to date. Dubai's gold prices are up 10% annually at its current 24‑karat average and reaching AED 632 each, the highest month in many decades. Before that, the price had already increased above AED 50 per gram in January alone on both robust local demand and global market signs.
Market Drivers
Market analysts credit the rally to a few main components:
- Safe-haven demand: Amidst geopolitical turmoil and economic chaos, gold is still a sought-after capital-saving asset.
- Price movements around the world: The global price of gold has already crossed a point where gold prices internationally have crossed crucial levels. That’s why bullion above $5,000 per ounce influenced prices on local markets in Dubai.
- Currency: A weaker U.S. dollar has made gold’s allure worldwide more attractive while the price has risen steadily through weaker values. Purchasing in the UAE has also increased with the dollar’s decline.
- Central bank and investor activity: The uptick in physical purchases around the world with a quick increase in physical purchases, along with the growth of gold holdings by central banks everywhere has boosted the momentum behind the prices.
Global Context
The expansion of Dubai’s gold market is part of a broader trend globally: a large group of individuals are turning more and more to precious metals amid greater uncertainty as trust in prices for this metal becomes less and less strong in the face of uncertainty about inflation, interest ratcheting up and political movements in countries and in international markets around the world.
Outlook
Price volatility will probably persist — even with record highs — in 2026. Temporary corrections will occur around the world, but it is a positive overall outlook, if geopolitical and economic anxieties persist. The new atmosphere is, for consumers and investors alike, one of some potential upside and caution: gold may provide a protected store of value, but it is wise to closely watch global and regional trends before a major purchase takes place.
Strategic Importance
Dubai’s market for gold, previously a central hub of bullion trade, reaches record levels — some sign of investor confidence, some sign of broader forces at play over the world economy.
