UAE gold prices spike further, now just Dh13 short of Dh500 mark

Dubai: Gold prices in the UAE are climbing fast, pushing closer to the symbolic Dh500 per gram mark for 24-karat gold — a level that would have seemed unthinkable just a few years ago.

As of Wednesday evening, 24K gold was selling at around Dh486.50 per gram, up Dh7 in a single day, while 22K gold, the favourite among UAE shoppers, hit Dh450.50. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.) 

The surge mirrors global moves, with spot gold crossing $4,000 an ounce for the first time ever. The rally is being fuelled by a mix of economic anxiety, geopolitical tensions, and investors looking for safety amid market uncertainty in the US and Europe.

US shutdown worries plague

Talk of a possible US government shutdown, worries about debt levels, and the start of the Federal Reserve’s rate cuts have all added fuel to the fire.

For UAE residents, the impact is twofold — shoppers are facing higher jewellery prices, but investors are sitting on substantial gains. Gold has surged more than 50% this year, far outpacing global stock markets and making it one of 2025’s standout assets.

“Gold crossing $4,000 isn’t just about panic buying — it’s about investors shifting their portfolios,” said Charu Chanana, strategist at Saxo Capital Markets. “Central banks laid the foundation, but now retail investors and funds are driving the next phase.”

Globally, exchange-traded funds (ETFs) backed by bullion have seen their biggest inflows in more than three years, signalling that both institutional and retail buyers are betting that gold’s run isn’t over yet.

More doubts among UAE buyers

For UAE buyers, the current rally raises a familiar question — is now the time to buy or wait? Many jewellers expect prices to remain elevated in the short term, especially as central banks continue stockpiling gold and uncertainty over US politics keeps markets on edge.

Still, for long-term investors, gold remains an anchor. It’s one of the few assets that has delivered consistent returns over decades — and in a city like Dubai, where physical gold buying is part of the culture, demand rarely cools for long.

As one bullion trader in Deira put it: “People might wait for a small dip before buying jewellery, but investors aren’t waiting. They’ve learned that every global crisis eventually sends gold higher — and this one’s no different.”