Dubai Gold Price Hike: 2025 proved to be a spectacular year for investors and jewelry collectors in Dubai. At the beginning of the year, the price of 24-karat gold was 318 dirhams per gram, but by December 31st, it had reached 520 dirhams per gram. This means investors gained more than 200 dirhams per gram over the year. This increase represents a growth of approximately 63.5 percent. The price of 22-karat gold rose from 294.50 dirhams to 481.50 dirhams per gram, and 21-karat gold also increased by 176.75 dirhams per gram. 14-karat gold saw a modest increase of 2.3 percent, making it suitable for lighter and more affordable jewelry.
Reasons for the rising gold prices
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Several economic and global factors contributed to the surge in gold prices. Increased demand for safe-haven assets led investors and Gulf central banks to flock to gold. Gold protects against geopolitical and economic uncertainties in investments. The prospect of interest rate cuts by the US Federal Reserve made gold even more attractive. Gold proved to be a better alternative compared to low-yielding bonds. The Dubai Central Bank increased its gold reserves by 26 percent to $7.9 billion, further strengthening the strategic importance of gold.
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Benefits for investors in Dubai and the Gulf
Due to Dubai’s gold souk culture and jewelry market, the impact of this surge reached ordinary people as well. The wealth of jewelry and bullion holders increased, and investors received attractive returns. While there was a slight dip in December due to global profit-taking, prices remained strong in the local market. Lowering charges and taxes in the Gulf encouraged investors to buy gold.
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High global demand for gold
The Dubai rally was not only a local phenomenon but also part of global trends. Economic uncertainty and geopolitical tensions have driven gold prices to $4,300 per ounce. Experts predict that gold prices will range between $4,000 and $4,900 per ounce by the end of 2026. In the Gulf region, gold holds not only investment value but also significant cultural importance.
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What will be the price of gold in 2026?
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Following the rally in 2025, gold prices remain a focus of attention in 2026. Despite profit-taking in January 2026, prices remained strong. If global and geopolitical uncertainties persist, gold will continue to serve as a safe-haven asset for Gulf and global investors. The more than 60 percent increase in the price of 24-karat gold has set a new benchmark for Dubai and global markets.