Gold keeps shining: No break for UAE buyers as prices hit record highs 40 times!

Dubai: Gold isn’t done surprising investors yet. Prices set a record of $3,825 an ounce last month, then peaked again yesterday to $4,010 — marking the 40th all-time high this year.

"Gold has done it. Gold has reached the long-awaited $4,000 per ounce mark, a level that carries psychological and symbolic significance," said Ahmad Assiri, Market Strategist at Dubai-based Pepperstone.

In the UAE, that momentum has pushed retail prices to Dh483 per gram on Wednesday, edging dangerously close to the Dh500 mark that once felt far away.

By Wednesday morning, the preferred 22-karat gold was now at Dh447 per gram. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.) 

"This moment represents a powerful and sustained rally that began with a breakout from a lengthy consolidation phase in early September, evolving into a pivotal chapter for the market and the yellow metal," Assiri added.

"Since that breakout, gold has risen by 16%, while attempts at a pullback has remained shallow and short-lived."

Why gold’s still rising

The World Gold Council’s latest Gold Market Commentary shows why this rally has legs — and why shoppers across the Emirates might see little relief soon.

Three big forces have been driving the rally, according to the report:

• Record-breaking inflows into gold-backed ETFs (exchange-traded funds)

• A weaker US dollar

• Political and market jitters worldwide

Global ETF inflows reached a massive US$17.3 billion in September — the highest ever — led by investors in North America and Europe, with Asia following suit. The surge comes as investors pull back from expensive stock markets and look for safety in something more tangible.

“Gold may look overbought, but it’s still under-owned,” the report notes, suggesting that institutional investors and central banks alike continue to see room for further buying.

What’s next for October

The report warns that October could be a tense month for equities — historically a volatile period for stock markets. With valuations stretched and earnings optimism fading, any correction could send even more investors toward gold.

While the US dollar could still rebound, analysts at the World Gold Council believe gold’s role as a “reliable hedge” remains intact, especially if the current mix of political tensions, trade risks, and central bank buying continues.

Even a small dip — like the brief selloff on September 30 — has been quickly snapped up by investors. “There’s still plenty of money waiting in the wings,” the report says.

What this means for UAE buyers

For UAE residents, the story is simple: gold is in demand everywhere, and that demand isn’t cooling. Shoppers who waited for a drop may have missed their window — at least for now.

Jewellery stores in Dubai’s Gold Souk and across the Emirates report brisk sales of lighter jewellery pieces, coins, and small bars as everyday buyers look to participate in the rally without breaking the bank.

Unless global tensions ease or the dollar stages a sharp recovery, gold prices are likely to remain elevated heading into the final quarter of 2025. For now, it seems, the shine isn’t wearing off anytime soon.