Gold prices in Dubai have surged to a record high, climbing 1.3% to $3,523 per ounce and surpassing the previous peak set in April. Since the beginning of 2025, gold has appreciated by 30%, establishing itself as the top-performing investment this year. This remarkable rally is largely attributed to concerns over inflation, anticipated US interest rate reductions, and political unpredictability, according to market analysts.
In the UAE, the spike in gold prices has significantly impacted jewellery costs, with 22-carat gold now priced at 390 dirhams per gram, up from 376 dirhams just a week ago. This sharp increase has particularly affected consumers purchasing gold for weddings and other special occasions. Financial experts attribute the trend to broader economic factors, including the US Federal Reserve’s monetary policies and doubts about the central bank’s independence amid political criticism.
Market strategists from institutions such as UBS and OCBC foresee gold prices continuing their upward trajectory in the coming months. Low interest rates and subdued economic indicators are enhancing gold’s appeal as a safe-haven asset. Shoppers are advised that prices are unlikely to decrease in the near term, making timely purchases crucial to avoid higher costs later.
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