Gold prices in Dubai rose to new highs this week, showing strong investor confidence and steady consumer demand across the UAE. The sharp rally pushed 24-karat rates to Dh482.75 per gram, moving closer to the Dh500 mark that once seemed far away.
22-karat gold traded at Dh447.00 per gram, while 24-karat gold stood at Dh482.75. Despite record prices, jewellery demand in Dubai remains strong. Buyers continue to purchase gold, even though they now get less weight for the same amount of money.
Over the past decade, UAE gold rates have usually increased during the year’s final quarter. Arjun Dhanak, Director at Kanz, said the trend remains firm in 2025. He expects a mild correction later but no steep decline. Buyers hoping for a big drop may need to wait until early 2026, but even then, prices may not return to 2023 levels.
Viraj Shah, General Manager at Bafleh Jewellery, called 2025’s rally exceptional. “We started near $3,000 an ounce and now it’s above $4,000,” he said. “We expect it to reach $4,100 by year-end.”
Sharing similar optimism, Shamlal Ahamed, Managing Director of Malabar Gold & Diamonds, praised gold’s resilience. He said prices have surged about 42% in ten months, offering strong returns. He added that gold remains tangible, accessible, and a reliable store of value.
Global banks also share a positive outlook. Goldman Sachs recently raised its 2026 forecast to $4,900 per ounce. The bank cited strong central bank buying and higher Western ETF inflows. It expects continued reserve diversification by central banks and more demand as U.S. interest rates fall.
In Dubai, retailers are preparing for a busy festive season. With Diwali and year-end celebrations nearing, buyers are still eager to shop for gold. Retailers note that cultural traditions and faith in gold’s stability continue to support demand, even at record levels.
Experts predict that high prices, market uncertainty, and seasonal demand will keep momentum strong through the year. The enduring strength of Dubai’s gold market reflects not only investor trust but also the city’s global reputation as a leading hub for gold trading.
