Gold on fire: Why experts say even a price of $5,000 is within reach now

Record highs, US Fed turmoil, central bank stockpiling are shaking UAE gold buyers

Last updated: September 04, 2025 | 19:54

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New gold collections beckon UAE shoppers.

Kalyan Jewellers

Dubai: Gold is exploding. The metal just hit a record above $3,575 an ounce, and now Wall Street heavyweights say it could rocket all the way to $5,000.

Goldman Sachs analysts warn that if trust in the US Federal Reserve weakens and just 1% of the $27 trillion US Treasury market shifts into gold, prices could approach that milestone. The bank’s baseline forecast already points to $4,000 by mid-2026, with scenarios stretching up to $4,500 and even $5,000.

DeVere Group CEO Nigel Green is equally bullish. He predicts gold will smash the $5,000 mark by early 2026, driven by relentless demand, falling interest rates, and a weakening dollar. “The drivers are already in place and momentum is compounding,” he says.

For UAE residents, this is no abstract forecast. Higher gold prices mean jewellery shoppers in Dubai’s souks will pay more for bangles, chains, and rings. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait).

Sellers may see a windfall as tourists and investors rush in. And for investors, gold is once again proving to be the ultimate safe haven in a world of unstable currencies and ballooning debt.

Also Read: Dubai gold rate drops Dh4 from record highs, tracking global ease in prices

Trading at sky-high levels

The surge is being fuelled by multiple forces:

Central banks are hoarding gold. China has expanded reserves for 22 consecutive months, while Middle East countries are adding at their fastest pace in decades.
Supply is flat. Mining output is stagnant, discoveries are rare, and environmental costs are rising.
The dollar is weakening. That makes gold more attractive to overseas buyers.
Fed independence is under fire. President Trump’s moves to oust Governor Lisa Cook and assert control over monetary policy are rattling markets.

“Gold thrives when governments look unpredictable,” says Green. With spiralling deficits, erratic trade policy, and inflation still running hot, investors are piling into bullion.

Spot gold is now holding near $3,540, just below its record. Silver, too, has broken through $40 an ounce for the first time since 2011, underscoring a broader safe-haven rush.

For UAE residents, the big question is simple: if gold does reach $5,000, will you buy, sell, or hold?

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.