Dubai gold prices slip back below Dh500 after hitting record high mark

Dubai: Gold prices in the UAE eased slightly by Tuesday evening after reaching a record high earlier in the day, with 24-carat gold hitting Dh502.50 per gram as the precious metal continues its remarkable rally in 2025.

The yellow metal opened at Dh502.50 per gram for 24-carat gold, but ended the day a tad below the milestone mark at Dh497.50. Similarly, 22-carat gold slipped to Dh460.75 per gram after hitting Dh465.25 earlier in the day. This represents a significant jump from Sunday's closing prices of Dh490.50 for 24-carat and Dh454.25 for 22-carat gold.

Globally, gold rose to $4,141.5 per ounce on October 14, up 0.70 per cent from the previous day, with prices climbing over 12 per cent over the past month.

Gold has surged more than 25 per cent since early 2025, driven by inflation concerns and market uncertainty. The precious metal has outperformed stocks, bonds, and oil in the first half of the year, with a weakening US dollar, steady interest rates, and geopolitical uncertainty driving demand.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait.) 

For UAE consumers, the record prices present a mixed picture. When gold prices previously hit record levels, Dubai Gold Souks experienced mixed reactions. Retail jewellery sales slowed due to high prices, while investors continued accumulating the precious metal as a hedge against inflation.

"While purchases among value-conscious buyers may soften in the short term, gold’s dual appeal — as a cherished ornament and a dependable investment — continues to strengthen," said Shamlal Ahamed, MD - International Operations, Malabar Gold and Diamonds.

"Its consistent performance, which also draws strong institutional interest, will undoubtedly reinforce gold’s position as both a symbol of prosperity and a cornerstone of financial security for consumers," he added.

Overall, the love for gold in the UAE continues to shine amid high prices. Jewellers say the price surge has changed how people buy, not whether they buy. “If people used to buy jewellery for Dh10,000 last year, they are also spending Dh10,000 now, but they will be getting much lesser weight compared to last year,” Arjun Dhanak, Director at Kanz Jewels, told Gulf News in an earlier interview.

He added that ahead of Diwali, gifting demand remains strong, even if buyers are choosing smaller, lighter pieces.