The gold market of Dubai is discussed all over the world… It is said that you will not get to see such gold in any other country as is found in the market of Dubai… And in the year 2025, this market of Dubai has done such wonders which you might not know about… So know in this news…

Dubai’s gold market showed a stunning performance in 2025 with an incredible rally. The price of gold was modest at the beginning of the year, but it quickly turned into a record-breaking rally. The price of 24 carat gold was 318 dirhams per gram on January 1, 2025, which increased to 520 dirhams per gram on December 31, i.e. a huge jump of about 63.5 percent. This resulted in a profit of more than 200 dirhams per gram to investors, collectors and common people.

According to market data, 22 carat gold rose from 294.50 to 481.50 dirhams per gram (an increase of 187 dirhams) and 21 carat gold also saw its price rise. Besides, 14 karat gold, launched in UAE in November 2024, also advanced with a marginal gain of 2.3 per cent, which is ideal for light weight and affordable jewellery. Globally, it was gold’s strongest yearly performance, with prices rising nearly 70 per cent.

Main reasons for gold boom

Many economic factors came together in 2025, due to which the demand for gold increased. Global investors and Gulf central banks turned to gold as it emerged as a safe haven investment, protecting against market uncertainties and geopolitical risks. Expectations of the US Federal Reserve lowering interest rates made gold more attractive as it outperformed real yield bonds.

The UAE Central Bank increased its gold reserves by 26 percent to $7.9 billion, reflecting the strategic importance of gold. These factors pushed gold higher against other asset classes.

Impact on Dubai and Gulf: Investors and common people benefit

For residents of Dubai, home to the glittering culture of the Gold Souq, the boom brought real benefits. The wealth of jewelery and bullion holders increased. The price of 24 carat gold stood around 520 dirhams per gram at the end of December 2025, making it a significant opportunity for investors and jewelery lovers. However, global profit-booking at the end of the year led to a decline of 18 dirhams a day, which affected local prices.

Gold Souq jewelers said the increasing interest from expatriate buyers and Middle East investors further boosted the market. The UAE’s competitive prices with low making charges and taxes also encouraged purchases.

Global trends and future demand

This surge in Dubai’s gold market was part of the global trend. Gold prices reached $4,300 an ounce due to geopolitical unrest and economic concerns. Major analysts such as the Dutch Bank and Goldman Sachs have forecast gold prices to reach $4,000 to $4,900 an ounce by the end of 2026, depending on central bank buying and global tensions. Gold is culturally and economically important in the Gulf region, and market demand for gold here will remain strong in the future.