Buying gold in Dubai this week? Prices edge higher as 2026 trading begins

Dubai: Gold prices in Dubai moved higher at the end of the first trading week of 2026, recovering from a muted start to the year as global markets reopened with a cautious but constructive tone. By 7.50 am on Friday, the price of 24-karat gold stood at Dh524 a gram, up from Dh520.25 the previous day. The 22-karat variety also strengthened, rising to Dh485.25 from Dh481.75 earlier in the week. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

The local uptick mirrors gains across international markets, where gold and silver advanced as trading resumed after the holidays. Spot gold climbed toward $4,350 an ounce, while silver rose more than 1%, extending momentum from a year that delivered the strongest annual performance for precious metals since 1979.

Metals open the year on firm footing

The early gains come despite thin liquidity and lingering caution among traders. Investors continue to price in the prospect of further US interest-rate cuts and a softer dollar in 2026, both supportive factors for bullion. At the same time, some market participants warn that near-term pressure could emerge from portfolio rebalancing.

With gold and silver rallying sharply last year, their weightings in major indices may now exceed target allocations. That could prompt passive funds to trim exposure, creating short-term volatility even as the broader outlook remains supportive.

Risk appetite returns to equities

Elsewhere, markets opened the year with risk appetite firmly back in play. Asian equities rose 0.8%, led by technology and chip stocks, with a regional tech index touching a record. Gains in names tied to artificial intelligence set the tone, with investors continuing to chase exposure to the sector that dominated markets through 2025.

Equity futures for the Nasdaq 100 advanced 0.6%, outpacing gains in broader US benchmarks. Optimism spilled over into cryptocurrencies, while the dollar weakened and Australian government bonds fell. Trading conditions remained uneven, with markets in mainland China closed and no cash trading in US Treasuries during Asian hours due to holidays.

Strong year leaves room for caution

Global equities ended 2025 with their strongest performance since 2019, driven by robust earnings expectations and enthusiasm around AI-led growth. The Nasdaq 100 rose 20% last year, marking its third consecutive annual gain, while shares of major chipmakers posted outsized returns.

That strength, however, has also sharpened concerns about valuations. In November, several Wall Street executives cautioned that equity markets could face a correction of more than 10% over the next year or two, citing frothy conditions in parts of the technology sector.

AI remains a defining theme for markets, but investors are entering 2026 with a more selective mindset. Research from Bespoke Investment Group also points to seasonal caution. Since 1953, the S&P 500 has fallen a median 0.3% on the first trading day of the year, with declines in each of the past three years.

- With inputs from Bloomberg.